Economy

Nigeria Inflation Drops to 20.12% in August but Prices Remain High

Published

10 months ago

September 20, 2025

Nigeria inflation rate fell to 20.12% in August 2025, marking the fifth month in a row that the country has seen a decline in inflation, according to new data from the National Bureau of Statistics (NBS).....KINDLY READ THE FULL STORY HERE▶

The latest report also showed that food inflation, which directly affects the daily lives of millions of Nigerians, dropped to 21.87% from 22.74% in July. This decline was welcomed as a sign of progress, but many households say the relief has not been felt in local markets.

Why Inflation Is Dropping

Analysts link the downward trend to a more stable naira, improved supply conditions, and ongoing monetary policies by the Central Bank of Nigeria (CBN). A stronger naira helps reduce the cost of imported goods, while tighter financial policies aim to control money supply in the economy.

Economist Tunde Adebayo explained:

“The numbers show that inflation is cooling, but Nigerians are still struggling. What matters to people is the price they pay for rice, bread, and transport. Until those prices come down, the average citizen won’t feel the impact.”

Food Inflation Still a Major Concern

Even though food inflation declined slightly, it remains above 21%, which is high compared to global standards. The cost of rice, garri, beans, and vegetables continues to put pressure on household budgets.

A market survey in Lagos revealed that a 50kg bag of rice still sells for between ₦55,000 and ₦60,000, only a little lower than prices recorded earlier in the year. Similarly, bread prices have not dropped despite the fall in flour import costs.

For families earning low wages, these high prices mean cutting back on meals or choosing cheaper substitutes.

Mixed Reactions From Nigerians

While government officials celebrate the inflation numbers as a positive sign, many Nigerians disagree. On social media, users argued that the figures do not reflect the reality on the ground.

One resident in Abuja said:

“They keep saying inflation is falling, but when I go to the market, everything is still expensive. Tomatoes, onions, and oil are not cheaper.”

This frustration shows a gap between official statistics and lived experiences.

Impact on Businesses and Jobs

Businesses are also watching the inflation trend closely. For small businesses, especially in food and retail, the high cost of goods continues to affect profits. Many shop owners report that customers are buying less, which slows sales and weakens growth.

On the other hand, some manufacturers say the recent currency stability has reduced import costs for raw materials. If this trend continues, it could support job creation and production in the coming months.

Government and CBN’s Role

The government has promised to continue policies aimed at bringing inflation under control. The Central Bank of Nigeria is expected to maintain tight monetary measures while supporting programs that increase food production and stabilize supply chains.

Economic experts suggest that investments in agriculture and local manufacturing will be key to lowering food inflation further. If farmers can produce more locally, reliance on imports will drop, reducing the pressure on foreign exchange and consumer prices.

What Nigerians Can Expect Next

Although the inflation rate has dropped for five months straight, it is still above 20%, which is very high compared to other African economies like Ghana and Kenya. Experts warn that without consistent policy actions, inflation could rise again.

For now, Nigerians will likely continue to feel the pressure of high food and transport costs, even if official statistics show improvement.

The fall in Nigeria’s inflation rate to 20.12% in August is a positive step, but for many citizens, the real impact is yet to be seen. Prices in markets remain high, and families are still struggling with daily expenses.

Until the government addresses food supply, production costs, and wages, the numbers on paper will not match the economic reality in households across Nigeria.

Economy

PETROL PRICE PARADOX: Why You Are Still Paying N1,200+ Despite Global Crude Crash.

Published

2 weeks ago

June 25, 2026

NivoNews

Despite a significant drop in global crude oil prices—with Brent falling to $73.14 and WTI to $69.85—petrol prices in Nigeria remain stubbornly high. While global markets have stabilized following the US-Iran conflict, domestic pump prices have barely budged, hovering between ₦1,200 and ₦1,300 per litre.....KINDLY READ THE FULL STORY HERE▶

Although industry insiders argue that ex-depot prices should be closer to ₦700, experts warn that a direct price drop is unlikely. Dr. Ayodele Oni, an oil and gas analyst, explains that in a deregulated market, the naira’s exchange rate is just as critical as the price of crude. He emphasizes that while falling crude prices help, the cost of petrol will only truly stabilize if the naira remains strong, as refined product imports are dollar-denominated. Consequently, relief for the average Nigerian may remain elusive unless both crude prices and the currency improve simultaneously.

Option 2: Accessible and Direct (Best for blogs or general reading)

Global oil prices are nearing pre-conflict levels, but Nigerians aren’t seeing the expected relief at the pump. Even though international oil benchmarks have dropped significantly since the US-Iran tensions cooled, local fuel prices remain stuck at ₦1,200 to ₦1,300 per litre.

Many marketers believe pump prices should be much lower, suggesting a price point closer to ₦700 per litre given current market conditions. However, analysts caution that it isn’t that simple. Because Nigeria’s fuel market is deregulated and reliant on imported refined products, the value of the naira is a major factor. Essentially, even if the price of crude oil falls, the cost of petrol will stay high as long as the dollar remains expensive against the naira. For now, experts believe that significant price relief depends as much on currency stability as it does on global oil trends.

Key Takeaways (Bullet Points)

The Disconnect: Global oil prices have returned to pre-conflict levels, yet domestic petrol prices remain high (₦1,200–₦1,300 per litre).
The Expectation: Marketers and the public believe current crude prices warrant a drop to around ₦700 per litre at the depot level.
The Complication: Experts note that the deregulation of the sector means the naira-to-dollar exchange rate is now a more powerful driver of pump prices than global crude costs alone.
The Outlook: Relief for consumers is unlikely to happen based on oil prices alone; it requires a combination of lower crude costs and a more stable naira.

Economy

UNBEARABLE BURDEN: Nigerians Groan As Cooking Gas Hits Unprecedented ₦2,000 Per Kilogram.

Published

1 month ago

June 1, 2026

NivoNews

Despite a significant shift toward domestic production and a drop in imports, the price of Liquefied Petroleum Gas (LPG) has surged to ₦2,000 per kilogram in various parts of Nigeria. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that local facilities—including the Dangote Petroleum Refinery—have become the primary suppliers of LPG between April 2025 and April 2026, with daily domestic supply reaching 4,500 tonnes by April 2026. Conversely, imports have plummeted, falling from 1,600 tonnes per day in November 2025 to just 200 tonnes per day by March 2026.....KINDLY READ THE FULL STORY HERE▶

Market Challenges and Consumer Hardship

Even with consistent local output, consumers are facing prohibitive costs and localized shortages, leading many households to abandon gas in favor of charcoal and firewood. Key issues contributing to the crisis include:

Supply Chain Barriers: Marketers report that sourcing the product has become increasingly difficult, and they are now paying between ₦25.2 million and ₦26.2 million for 20 metric tonnes of LPG.
Economic Impact: The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) stated that these high costs are causing severe hardship for families, food vendors, and small businesses.
Policy Setbacks: Stakeholders warn that these trends threaten to reverse years of progress in promoting clean energy adoption and may lead to increased environmental damage.

Infrastructure Progress

While market prices remain high, the Nigerian Gas Infrastructure Company reports that several critical projects designed to improve gas transportation are nearing completion. As of the latest data:

The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project is 93.40% complete.
The OB3 River Niger Crossing stands at 93.88% completion.
The ELPS Midline Compressor Project has reached 94.45% completion.
The Odidi-Warri Expansion Project is 70.28% complete, while the Escravos-Odidi project is in its early stages at 17.49%.

Despite this infrastructure progress, industry experts emphasize that addressing distribution bottlenecks remains essential, as increased domestic production alone has so far failed to lower retail prices for the average Nigerian.

Is there a specific aspect of this situation—such as the infrastructure projects or the marketers’ stance—that you would like to explore further?

Economy

REVOLUTIONIZING THE SKIES: How Nigeria’s New $7 Billion AfDB Deal Will Transform Air Travel Forever!.

Published

1 month ago

May 29, 2026

NivoNews

Nigeria has officially signed a Letter of Intent with the African Development Bank (AfDB) to advance aviation development across the continent. Minister of Aviation and Aerospace Development, Festus Keyamo, formalized the agreement during a dialogue in Brazzaville, Congo, where he served as the African Champion of the AfDB’s Integrated Aviation Transformation Programme.....KINDLY READ THE FULL STORY HERE▶

During the session, Minister Keyamo showcased President Bola Tinubu’s “Renewed Hope Agenda,” emphasizing the need for capital to support key infrastructure and the newly established Nigeria Aircraft Leasing Company. To attract this investment, the Minister highlighted Nigeria’s recent regulatory reforms, including the domestication of the Cape Town Convention and updates to insurance frameworks. In response, AfDB President Dr. Sidi Ould Tah pledged the bank’s support for the programme, signaling a shared commitment to strengthening aviation finance and infrastructure throughout Africa.

Nigeria Moves to Boost Aviation Sector Through AfDB Partnership

Nigeria has taken a major step toward modernizing its aviation industry by signing a Letter of Intent with the African Development Bank (AfDB). Aviation Minister Festus Keyamo, representing the country in Brazzaville, Congo, utilized the platform to present Nigeria’s aviation roadmap under President Tinubu’s “Renewed Hope Agenda.”

A core focus of the discussion was the Nigeria Aircraft Leasing Company, which is expected to improve aircraft financing for local operators. Minister Keyamo assured stakeholders that Nigeria is ready for increased investment, citing significant reforms such as the domestication of the Cape Town Convention and modernized insurance policies. The AfDB has signaled strong support for these initiatives, agreeing to collaborate on the Integrated Aviation Transformation Programme to drive sustainable growth for Nigeria and the wider African aviation market.

Option 3: Short & Punchy (Best for social media or newsletters)

Nigeria is accelerating its aviation growth through a new partnership with the African Development Bank (AfDB). Aviation Minister Festus Keyamo recently signed a Letter of Intent in Brazzaville to unlock funding for the sector, specifically targeting the new Nigeria Aircraft Leasing Company. By implementing key reforms—like the domestication of the Cape Town Convention—Nigeria is positioning itself as a hub for aviation investment. The AfDB has officially pledged its support, marking a key milestone in efforts to modernize air travel infrastructure across the African continent