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

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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,”.

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HAPPENING NOW: Lagos E-Hailing Drivers Begin Indefinite Strike Over Fares, Welfare Others

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E-hailing drivers in Lagos State have commenced an indefinite strike over unresolved concerns about fare structures, high platform commissions, deductions and welfare conditions.

The industrial action, organised by the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), an affiliate of the Nigeria Labour Congress, began on Monday and will continue until further notice or until satisfactory progress is made in addressing the drivers’ grievances.

In a notice issued ahead of the strike, AUATON said the decision followed persistent complaints about operational policies, drivers’ earnings, safety, security and the long-term sustainability of app-based transport work. “Despite repeated efforts by drivers and stakeholders to draw attention to these concerns, many of the issues remain unresolved,” the union stated.

The action primarily affects drivers on major platforms including Bolt and inDrive. Drivers are demanding a substantial reduction in commissions — with the union pushing for a maximum of 10 per cent — and a review of fare structures to better reflect rising operating costs such as fuel, vehicle maintenance, insurance, repairs and financing. They are also seeking improved welfare measures, stronger passenger verification, accident support and better protection against risks including robbery and assault.

To ease the financial pressure on participants, AUATON appealed to fleet owners and managers to temporarily suspend daily remittance obligations and related operational targets. The union urged partners not to impose penalties or sanctions solely because of a driver’s participation in the strike, noting that drivers would not be generating normal revenue during the industrial action.

AUATON said it plans to deploy its task force across local government areas in Lagos to monitor compliance, with internal disciplinary measures possible for drivers who defy the directive. The notice was signed by the Lagos State Chairman of AUATON, Jaiyesimi Olalabi Azeez (popularly known as Makavelli), who reaffirmed the union’s willingness to pursue peaceful dialogue with platforms, fleet owners and other stakeholders.

Bolt has called for constructive dialogue, saying it recognises the economic pressures facing drivers and has proposed a roundtable discussion with AUATON and driver representatives. The company stated it is committed to addressing concerns around earnings, operating costs, transparency and welfare.

Commuters in Lagos who rely heavily on app-based services may experience fewer available vehicles, longer waiting times and potential fare increases while the strike continues.

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Afreximbank Hails Africa Credit Rating Agency

” We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

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Photo: Mr Denys Denya, Senior Executive Vice President of Afreximbank addresses guests during the launch of the Africa Credit Rating Agency in Port Louis, Mauritius on October 7, 2026

African Export-Import Bank (Afreximbank) has declared it’s strong backing for the recently launched Africa Credit Rating Agency (AfCRA) by the African Union.

“AfCRA is an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk,” said Mr Denys Denya, Senior Executive Vice President of Afreximbank.

Mr Denya emphasised that credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development.

It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market.

Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage.

Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models.

Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denya, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures.

The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.

”Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans.

“We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

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Nigeria’s ₦33bn Fruit Import Bill Exposes Missed Opportunities in Jos

“In North Central Plateau State, apples grow very well. Unfortunately, …, the government, especially the state government, has not been serious about mobilising farmers, training them, giving them improved varieties and the right inputs.”

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Data from the foreign trade statistics compiled by the National Bureau of Statistics (NBS) revealed that Nigeria imported apples and strawberries worth N33 billion from South Africa in the first half of 2026 (January -June).

The report stated that N10.38bn of apples were imported in the first quarter while N22.65bn of apples and strawberries were imported in the second quarter.

According to the report, apples are known to grow best in temperate climates with cold seasons providing 800–1,000+ chilling hours below 45°F (7°C) to break dormancy and ensure proper fruit set.

It can also grow in moderate weather (ideally 65–75°F or 18–24°C). This helps with optimal growth and flavour development without excessive heat stress.

This temperature is suitable in Plateau State, however, a former President of the All Farmers Association of Nigeria (AFAN), Mohammed Gettado, explained that apples were grown in limited quantities in Plateau State but suffered neglect due to poor government attention and the widespread view that the fruit was meant for the wealthy.

Gettado said, “In North Central Plateau State, apples grow very well. Unfortunately, people consider apples a fruit for the elite only. So, the government, especially the state government, has not been serious about mobilising farmers, training them, giving them improved varieties and the right inputs.”

He added that production remained “very small” because farmers lacked support, stressing that subsidised inputs delivered at the right time were critical to scaling output.

“What farmers require are inputs such as fertiliser, agrochemicals and improved varieties, and they must be given at the right time, before planting,” he said. “If farmers can get these, and also have access to markets, Nigeria can produce whatever it needs and even beyond.”

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