Nigeria’s inflation rate declined for the fourth consecutive month, dropping to 21.8% in July from 22.22% in June, according to data released Friday by the National Bureau of Statistics (NBS). While the stabilising trend signals cautious optimism, the persistently high cost of living continues to fuel public discontent and debate over the government’s economic strategy.
The latest Consumer Price Index (CPI) report showed a slight uptick in month-on-month headline inflation, which rose to 1.99% in July from 1.68% the prior month. Core inflation—excluding volatile agricultural and energy prices—declined by 6.13% year-on-year to 21.33%, reflecting easing pressures in non-food sectors. Food inflation, however, remained stubbornly elevated at 22.74% annually, though it edged down to 3.12% month-on-month from 3.25% in June. Key drivers included food and non-alcoholic beverages, transport, and hospitality services, highlighting ongoing challenges in affordability for households.
The gradual cooling aligns with President Bola Tinubu’s economic reforms, introduced after he took office in May 2023, which aimed at reducing fiscal deficits and attracting foreign investment. Yet critics argue these policies—including subsidy removals and currency reforms—have deepened economic hardships. Over the past two years, protests such as the August 2024 #EndBadGovernance demonstrations have underscored widespread frustration over declining purchasing power and stagnant wages.
Amid the polarised discourse, World Trade Organization Director-General Ngozi Okonjo-Iweala offered measured support for Tinubu’s administration during a meeting on Thursday. “The president and his team have worked hard to stabilise the economy,” she stated, acknowledging progress while urging further action. “The reforms are in the right direction, but growth and social safety nets must follow to cushion the impact on vulnerable citizens.” She emphasized job creation and targeted support as critical next steps to translate macroeconomic gains into tangible relief.
The NBS data underscores a fragile equilibrium: while inflationary pressures show tentative signs of moderation, everyday realities for Nigerians remain fraught. Analysts caution that sustaining the downward trajectory will hinge on stabilizing agricultural output, mitigating supply chain disruptions, and addressing structural inefficiencies. For now, the government faces dual pressures—maintaining investor confidence through fiscal discipline while responding to a population demanding immediate respite from economic strain. The path ahead, stakeholders agree, requires balancing short-term interventions with long-term reforms to ensure stability translates into inclusive growth.
