Nigeria’s Inflation Declines for Fourth Consecutive Month, But Food Prices and Business Costs Remain High
Story: Written By springnewsng August 19,2025
Despite a fourth straight decline in Nigeria’s inflation rate, citizens and business owners say they are yet to feel any real relief from rising living costs.
According to the National Bureau of Statistics (NBS), inflation eased to 21.88 percent in July 2025, down from 22.22 percent in June, marking a steady fall since April when it was at 23.7 percent. The trend has been celebrated by President Bola Ahmed Tinubu’s administration as evidence of progress under his leadership.
Nigeria’s rebased Gross Domestic Product (GDP) also grew to N372.8 trillion in 2024, with the inflation rate rebased earlier this year. This statistical adjustment brought the year-on-year headline inflation rate down sharply to 24.48 percent from 34.80 percent.
The upbeat figures were echoed by former Finance Minister, Ngozi Okonjo-Iweala, who recently noted that Nigeria’s economy appears to be stabilizing.
However, for ordinary Nigerians, the economic reality tells a different story.
Beautiful Statistics, Harsh Realities
Food prices, fuel, interest rates, energy, and transportation costs remain elevated despite the reported decline. For example:
- A 50kg bag of local rice sells for between N69,000 and N75,000 in Abuja and Lagos.
- Fuel prices range between N865 and N925 per litre.
- Cooking gas costs around N1,000 to N1,200 per kilogram.
- Electricity tariffs under Band A stand at N209.50 to N231.79 per kWh.
Transportation fares, both by road and air, have also surged, leaving many Nigerians frustrated by what they call “beautiful statistics” that do not match their lived experiences.
Experts Divided on Inflation Figures
Economic experts have expressed mixed views about the July inflation data.
Former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, argued that the official figures are disconnected from the realities faced by citizens.
“There is a wide difference between the inflation figure by NBS and the reality on the ground. The government believes in statistics while ignoring realities. The report looks good on paper, but hunger is everywhere,” he said.
He urged the government to revisit its agricultural and monetary policies, stressing that interest rates and food supply remain major challenges.
Similarly, Gbolade Idakolo, Chief Executive Officer of SD & D Capital Management, said while core inflation has declined due to the Central Bank of Nigeria’s monetary tightening, food inflation continues to rise because of insecurity in farming areas and exchange rate challenges.
“Imported food remains expensive due to logistics, energy, and transportation costs. The government must strengthen agricultural policies to ease the pressure on food prices,” he explained.
On his part, renowned economist Prof. Segun Ajibola noted that the Consumer Price Index (CPI), which forms the basis of the inflation calculation, does not always reflect the diverse price realities across Nigeria.
“The basket of items used to compute inflation may not cover all consumables, and prices vary widely across different regions. So, while official figures may suggest a decline, the everyday reality of Nigerians may be quite different,” Ajibola stated.
While Nigeria’s inflation figures paint a positive picture for policymakers, the lived experiences of citizens suggest otherwise. Food, fuel, energy, and transportation costs remain high, leaving many Nigerians doubtful that the country’s economic recovery is being felt where it matters most — in their daily lives.
