Dr. Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, says the marginal decline in Nigeria’s headline inflation signals improved macroeconomic stability, though he warns the high cost of living persists for ordinary citizens.
Data released by the National Bureau of Statistics shows inflation eased to 15.43 percent in July from 15.91 percent in June. Speaking to Media Talk Africa, Yusuf attributed the deceleration to sustained stability in the foreign exchange market, which has curtailed imported inflation — a critical driver given Nigeria’s high import dependence.
“The marginal drop in the inflation rate is perhaps a reflection of the sustained macroeconomic stability, particularly around the exchange rate,” Yusuf said. “The fact that the exchange rate has remained stable and, in a few instances, even slightly appreciated has impacted positively on investment and investors’ confidence. It has also lowered inflation expectations.”
Despite the improvement, Yusuf emphasised that key cost-of-living pressures remain intact. Food inflation, transportation costs, energy prices and utility tariffs continue to drive inflationary pressure and disproportionately affect vulnerable households.
“That is why the ordinary citizen still continues to be very vulnerable, even with the deceleration or even with the disinflation that we are recording,” he said. “There is still a lot of intervention that needs to be done at both the federal and the state government levels to address concerns around food inflation, transportation, energy prices and the cost of utilities.”
Yusuf described these as structural factors requiring coordinated fiscal intervention across all tiers of government. While exchange rate stability has provided a favourable macroeconomic backdrop, translating that into tangible relief for households will depend on targeted policies addressing supply-side constraints in food production, transport logistics and energy infrastructure.
The NBS data reflects a continuing disinflationary trend, though analysts caution that the pace of decline remains gradual and subject to risks from fiscal pressures, climate-related food supply shocks and global commodity price movements.
