Business

Hardship: Nigeria’s inflation drops signal economic recovery – CPPE, Economists

Published

1 year ago

March 18, 2025

387 Views

Nigerian economists and the Centre for the Promotion of Private Enterprise have explained that the two consecutive drops in Nigeria’s inflation rate signal that the country’s economy is recovering from hardship

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, the CEO of SD & D Capital Management, Gbolade Idakolo, and a Don at Lead City University in Ibadan, Prof. Godwin Oyedokun, disclosed this on Monday.

They spoke in reaction to Nigeria’s February 2025 inflation drop.

On Monday, Nigeria’s inflation lowered for the second time to 23.18 percent in February 2025 from 24.48 percent recorded in the previous month, according to the National Bureau of Statistics’ latest Consumer Price Index.

The data showed that food inflation also declined in February to 23.51 percent from 26.08 percent in January.

Nigeria’s inflation fell massively to 24.48 percent in January after CPI rebasing.

However, while the data from NBS showed the inflation rate is lowering, the cost of living in Nigeria has remained elevated.

Nigeria’s deceleration in inflation shows macro stability — CPPE

The deceleration in the inflation rate can be attributed to moderation in macro stability, according to CPPE.

Yusuf stressed that the drop in exchange rate volatility and drop in premium motor spirit prices are contributing factors to the decline in Nigeria’s inflation rate.

He, however, emphasised that Nigeria’s inflation remains high, noting that the government needs to come up with policies to bring down the prices of basic items, such as staple foods and pharmaceuticals.

“The further deceleration in inflation in February can be attributed to two factors. First is the base effect.

When you relate the 2025 figure to 2024, it is expected to see further narrowing because the inflation rate is mainly year on year.

This trend is likely to continue for the larger part of 2025. The second part is due to moderation in macro stability. We are beginning to drop in the volatility in the exchange rate in the last few months.

“This is a key factor because the exchange rate is a major driver of inflation. Also, slight reduction in energy prices such as PMS.“

However, the inflation rate of 23.18 percent is still high. This means that there is a lot of work to be done to ease inflationary pressures on citizens.

The government should take some urgent steps to bring down the price of basic products. Foods, pharmaceutical products, cooking gas, and staple foods (bread, noodles, rice)- should be top on the agenda of government.

“Another good news is that there is an increase in food production on account of improved security,”.

Pressures driving higher prices are easing — Prof Oyedokun

Oyedotun said the latest inflation drop suggests that the factor driving higher prices may be stabilising, which could provide relief to consumers and businesses.

According to him, the second consecutive drop in headline and food inflation, with figures at 23.18% and 23.51%, respectively, could be viewed as a positive indicator of an easing inflationary trend.

He said this suggests that the pressure driving prices higher may be stabilising, which could provide some relief to consumers and businesses.

He noted further that improved supply chain conditions, seasonal factors that affect food production and prices, government interventions, and monetary policies are factors contributing to the inflation rate decline.

Regarding the February inflation drop outside the Consumer Price Index (CPI) rebasing, several factors could contribute.

“These might include improved supply chain conditions, seasonal factors that affect food production and prices, or government interventions that stabilise markets.“

Additionally, any recent policy measures aimed at curbing inflation, such as adjustments in interest rates or subsidies for essential goods, could also play a role,” he said.

On why the inflation drop has not been reflected in market prices, he said, “As for the inflation figures not aligning with the reality of elevated prices for goods, this discrepancy could stem from various reasons.“

The CPI may not fully capture specific categories of goods that are experiencing sharp price increases.

Additionally, inflation measurements are often averages and may not reflect localised price changes or the unique purchasing patterns of different consumers.

“Factors such as producer price increases, distribution costs, and market dynamics can also lead to a situation where prices remain high despite a reported decline in inflation rates”.

Why inflation rate decline doesn’t reflect on the price drop — Idakolo

Idakolo said Nigeria’s inflation figures do not reflect the general price of goods because of the strength of the naira- exchange rates and interest have remained high.

“The inflation figures are not generally reflecting on the price of goods because certain fundamentals of the economy, like the strength of the Naira, exchange rate, and interest rates, remain high, which have made it difficult for the impact of lower inflation to be felt by the people.

However, if the government continues to drive down prices due to targeted policies, it would only be a matter of time before people start feeling the impact of reduced inflation on the economy,”.

Business

FG Plans to Extend Lagos Rail Line to Murtala Muhammed Airport Terminals

Keyamo noted that Lagos accounts for 67 per mcent of passenger traffic through Nigeria’s airports.

Published

2 hours ago

June 10, 2026

OCHEFA

7 Views

The Minister of Aviation and Aerospace Development, Festus Keyamo, announced at the ongoing Invest in Lagos 3.0 summit, that the federal government has concluded arrangements to extend the existing Lagos rail network to the domestic and international terminals of the Murtala Muhammed Airport (MMA).

The move is aimed at improving connectivity and strengthening Lagos’ position as an aviation hub in Africa.

He said discussions between his ministry and the state government are ongoing.

The extension will link the rail line that currently terminates at Ikeja Bus Stop to the airport.

According to Keyamo, the line will pass through the General Aviation Terminal (GAT), continue to the Murtala Muhammed Airport Terminal Two (MMA2) operated by Bi-Courtney Aviation Services Limited (BASL), and end at the international terminal.

“That rail line is about to start. It is the extension of the rail line. So, Lagos is just ready for the next big step in terms of its aviation activities,” the minister said.

The project is expected to ease access to Nigeria’s busiest airport. It also supports the government’s ambition to position Lagos as a major aviation and logistics hub on the continent.

The proposed link will complement Lagos’ expanding rail network.

Last month, the Lagos State Government said the Blue Line carried about 3.5 million passengers in 2025, with daily ridership rising to 15,000 commuters. Work continues on its extension to Okokomaiko and expansion of services on the Red Line.

Keyamo noted that Lagos accounts for 67 percent of passenger traffic through Nigeria’s airports.

He argued that the state’s location gives it a natural advantage to compete with established aviation hubs.

“Just six hours across the Atlantic, you will get to South America from the Lagos airport. Six hours down, you will get to Southern Africa. Six hours to the Middle East, you will get to Dubai or Qatar. Six hours up, you will get to Europe, either France or London.

That is the equidistant advantage that Lagos provides as a hub for the whole of Africa. We will soon catch up with hubs like Addis Ababa and Lome,” he said.

The minister also highlighted ongoing investments in airport infrastructure under President Bola Tinubu’s administration.

He said about $500 million has been committed to reconstructing and modernising the international terminal at Lagos airport.

The investment will transform the ageing facility into a modern airport capable of handling growing passenger and cargo traffic.

Keyamo added that the federal government has expanded Nigeria’s international airport network. Victor Attah International Airport in Uyo and Maiduguri International Airport have been designated as international airports, bringing the total to seven.

He said the resolution of the long-running dispute between BASL and the federal government shows the administration’s commitment to creating an enabling environment for private sector participation in aviation.

He urged local and foreign investors to explore opportunities in the sector, including the proposed airport project in the Lekki-Epe corridor promoted by the Lagos State Government.If implemented, the airport rail extension will provide direct rail access to the country’s busiest aviation gateway.

It will complement ongoing investments in Lagos’ mass transit system and support broader efforts to improve mobility in Nigeria’s commercial capital.

Business

Exchange Rates Today, Wednesday 10 June, 2026

Black Market Rates
US Dollar (USD) Buy ₦1,390 Sell ₦1,400
Great British Pound (GBP) Buy ₦1,855 Sell: ₦1, 875
EURO (EUR) Buy ₦1,000 Sell ₦1, 100

Published

3 hours ago

June 10, 2026

OCHEFA

5 Views

Official CBN Exchange Rates

US Dollar (USD) ₦1,360.55

Great British Pound (GBP) ₦1,823. 00

EURO (EUR) ₦1,873.61

SWISS FRANC (CHF) ₦1,709. 02

JAPANESE YEN (JPN) ₦8.49

CHINESE YUAN (CNY) ₦200.92

West African CFA (XOF) ₦2.40

West African Unit Account (WAUA) ₦1,856. 66

SAUDI RIYAL (SAR) ₦362. 38

SOUTH AFRICAN RAND (ZAR) ₦82.71

Black Market Rates

US Dollar (USD) Buy ₦1,390 Sell ₦1,400

Great British Pound (GBP) Buy ₦1,855 Sell: ₦1, 875

EURO (EUR) Buy ₦1,000 Sell ₦1, 100

South African Rand (ZAR) Buy ₦75 Sell ₦90

UAE Dirham Buy ₦350 Sell ₦370

Chinese Yuan Buy ₦180 Sell ₦200

Ghana Cedi (GHS) Buy ₦100 Sell ₦115

West African CFA Buy ₦2,450 Sell ₦2,550

Central African CFA Buy ₦2,320 Sell 2400

Australian Dollar Buy ₦800 Sell ₦900

Credit: CBN I Aboki Forex

Business

Invest in Lagos 3.0 Summit Attracts more than 600 delegates

Ohibaba.com reports that the summit, themed “Lagos: The Business Gateway to Africa,” featured presentations from representatives of the Presidency and the governors of Lagos, Imo, Abia, Plateau, Taraba and Nasarawa states.

Published

7 hours ago

June 10, 2026

OCHEFA

14 Views

• Representatives of government and private sector delegates at the summit

Invest in Lagos 3.0 Summit attracted more than 600 delegates—including global institutions, sovereign wealth funds, development finance institutions and trade networks.

The host governor, Babajide Sanwo-Olu, called for increased private sector investment in rail transport, energy, agriculture, agro-processing and water infrastructure.

He said that addressing transportation challenges would unlock Lagos’ economic potential, reduce travel time, boost productivity and improve returns on investment.

Minister of Finance, Dr. Taiwo Oyedele, assured investors of the Federal Government’s commitment to creating a conducive business environment through ongoing fiscal reforms. He said the new tax law has eliminated multiple taxation, improved compliance and provided relief for small and medium enterprises.

Oyedele added that stamp duty collection has been transferred to state governments and commended states that have adopted harmonised tax systems.