Nigeria’s Inflation Rate Dips, But Economic Woes Persist

Abuja, Nigeria – Despite a slight drop in inflation rate in August, Nigerians are still grappling with the harsh reality of high living costs. The country’s inflation rate, which had risen to 33.40% in July, fell to 32.15% in August. However, the value of the naira has weakened, and fuel prices continue to soar, threatening to reignite the inflationary trend.

For Michael Anthony, an engineer and father of four, the slight drop in inflation rate has brought little relief. His household expenses remain steep, and he is worried that the inflation rate might rise again. "In the month of July, I bought a bag of rice at the rate of 65,000 naira, but three days ago, I bought a bag of rice for 95,000 naira," he said. "If you want to buy anything, price has risen because of the price of fuel. I’m worried that inflation rate might rise again."

Food trader Blessing Ochuba is also struggling to stay afloat. With customers unable to buy in bulk, she is cutting back her stock and adjusting prices to stay in business. "People that normally buy in bags, they now buy like half or quarter… because they can no longer afford to buy for now," she said. "I used to buy like 10 bags of rice, but now I cannot afford to buy five. Honestly, I did not see the coming down, everything is going higher. It’s on the high side, and it is really affecting us."

Despite the slight drop in inflation rate, Nigeria’s currency has weakened from 1,200 to 1,600 to the dollar, and gasoline prices have soared from 620 to nearly 1,000 naira per liter over the past three months. Development economist Hauwa Mustapha credited a government policy in which food imports were not subject to excise duty for 90 days for the slight inflation drop. However, she warned that a lasting recovery will depend on government measures.

"The government can do to manage inflationary pressure for both short term and long term, I think for now, is to concentrate policy action in the area of food supply," Mustapha said. "Thankfully, we are approaching the harvest season. Typically, in Nigeria, we also know that we experience a lot of post-harvest loss. This is… the time for the country to manage the harvest, particularly control [and] minimize post-harvest losses, so that we can keep the food supply steady."

Experts say the government’s next steps will determine whether this inflation dip signals a recovery or just temporary relief.