Nigeria’s latest inflation report, showing continued deceleration, has sparked mixed reactions across the country, with economic experts welcoming the development while citizens on social media questioned its impact on everyday living.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), described the trend as a positive sign of increasing economic stability.
Speaking in an interview with Nairametrics, Yusuf noted that the consistent slowdown in inflation signals that the economy is gradually adjusting to the government’s reform measures.
“My immediate reaction is that it’s a very good development. We are seeing a very good change of consistent deceleration inflation. It’s also an indication of increasing stability in the economy. It’s a reflection of the fact that the macroeconomic environment is getting better. That’s a reflection of the fact that the economy and investors generally have fully adjusted to the realities of the reforms,” Yusuf stated.
However, he cautioned that declining inflation does not automatically translate to lower living costs.
“Reduction in inflation is not the same thing as a reduction in price. What we need are specific, targeted policies to deal with the issue of the cost of living, and this will involve a combination of policies – fiscal, monetary, investment, trade, tariffs, activities, all these policies.”
Experts call for reduction in MPR
On monetary policy, Yusuf argued that it was time for the Central Bank of Nigeria (CBN) to review its tightening stance.
“I agree with the position that the Monetary Policy Rate (MPR) should be reduced because monetary policy is extremely tight at the moment. Investors are still grappling with high costs of borrowing, and easing interest rates would help boost production and investment.”
Dr. Ango Malari, an economic analyst at the Society for Peacebuilding and Economic Advancement, expressed concerns over the high rate of food inflation. He also echoed the sentiments that MPR should be reduced to “stimulate investor confidence.”
Lead Analyst at Nairametrics, Idika Aja, expressed relief at the drop in inflation rate but cautioned that many Nigerians still experience hardship.
“Yes, the rise in the inflation rate is slower than before; however, most Nigerians still struggle to survive. Even if prices are not rising as fast as they were, they are still high and out of the reach of many Nigerians. Their purchasing power is decimated, and it will only take higher wages to get them to afford things.”
Nigerians React
While economists emphasized policy adjustments, many Nigerians on social media reacted with skepticism and anger.
Williams (@willie_fied) said on X, “You will soon cook this thing to 1% while Nigerians are dying of hunger. Your Master rightly asked, ‘”na statistics we go chop?” INEC, Judiciary, every institution is fabricating things to make Amoda look good, but we know the reality on the streets. Continue cooking.”
Sam drew (@Samdrew27881981) said, “That’s the plan. The oga already said he wants 5% and that’s what they are working towards. By December 2026, they will get there in preparation for the 2027 election. Nna campaign material. Same way Nigeria has less unemployment than developed economies, interesting times”
Ogbonnaya Abraham (@kekedriver1990) wrote “@NBS_Nigeria you people are collecting brown envelope from APC to give wrong statistics”
Atobajaye (@Atobajaye25) said, “This analyst is a scam. The CPI figures are wrong; the cost of living hasn’t dropped a penny, yet they’re claiming inflation has reduced. How come?”
Dr. Toks (@fimiletoks) wrote, “Single-digit inflation is achievable in Q3 2026, but I am afraid that pre-election spending will mess things up.”
King YEM👽LALA (@yemolala02) wrote “Yes, inflation speed Cool off is happening, but the Food chain & Transportation system needs serious government intervention. The Ministries of Transportation and Agriculture aren’t serious to tackle the problems.”
OPEOLUWA (@OpeBee) said, “This is great news, and frankly speaking, it was expected. Whatever is happening to the dollar rate and food prices should continue. We have 4 more months to go, can we reach our 15% target ?. Cardoso and his team have no reason not to reduce the interest rate.”
What you should know
Nigeria’s headline inflation rate eased for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% recorded in July 2025.
- This is according to the latest figures released on Monday by the National Bureau of Statistics (NBS).
- This means, according to the NBS, that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025.
- Furthermore, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, projected a future decline in interest rates, citing easing inflation and improved capital allocation efficiency as key drivers.
- At its 301st Monetary Policy Committee (MPC) meeting held in July, CBN voted unanimously to maintain the MPR at 27.5%.
