Market News

By Isaac Asabor

The recent announcement by the Central Bank of Nigeria (CBN) that the country’s inflation rate has dropped to 24.48 percent after the rebasing of the Consumer Price Index (CPI) has been met with skepticism by many Nigerians. 

Despite this statistical adjustment, consumers across the country argue that the cost of goods and services remains exorbitantly high, making daily survival a daunting task.

CBN Governor Olayemi Cardoso, stated that the rebased CPI is now a more accurate reflection of consumption patterns, replacing outdated metrics such as black and white television sets that no longer hold relevance. 

According to him, the new data-driven approach ensures that monetary policies are formulated based on real-time economic realities.

However, for many Nigerians, the drop in inflation on paper has not translated into tangible relief in their daily expenses. Consumers insist that staple foods, transportation, rent, and healthcare costs have continued to skyrocket, leaving them wondering where exactly the drop in inflation is being felt.

A visit to markets across Lagos, in particular, shows that the prices of essential commodities remain as high as ever. Traders lament that the cost of purchasing goods from wholesalers has not decreased, and in some cases, prices have risen due to factors such as foreign exchange rates and fuel prices.

At Mile 12 Market in Lagos, a trader, Alhaja Fatima Adewale, expressed her frustration.

“I don’t know what they mean by inflation dropping. A bag of rice that used to sell for N30,000 is now N55,000. A bottle of vegetable oil that was N800 last year is now over N2,000. Customers are complaining, but we also buy at high rates.”

Similarly, at the same Mile 12 Market, Mrs. Comfort Ejike, a civil servant and mother of three, lamented the rising cost of living:

“My salary has remained the same, but everything I buy has doubled in price. Even transportation has increased because of the cost of fuel. I don’t understand this so-called drop in inflation they are talking about.”

In urban centers where many workers rely on public transportation, the high cost of commuting has added to their economic woes. Commercial transport fares have surged significantly since the removal of fuel subsidies, making daily movement a financial burden.

Emeka Okoro, a commercial driver in Lagos, explained: “Before, I used to buy fuel of about N8, 000 before I start business, but now I need over N25, 000. How do you expect transport fares to remain the same? Passengers complain, but we also suffer. Everything is expensive.”

Rent prices have also remained a sore point for many Nigerians. In cities like Lagos and Port Harcourt, landlords continue to increase rent, citing high building material costs. A two-bedroom apartment that rented for N800,000 in 2022 now goes for between N1.5 million and N2 million, making it nearly impossible for many middle-class Nigerians to afford decent housing.

Basic healthcare services have also become more expensive, forcing many Nigerians to rely on self-medication or traditional remedies. Hospitals and pharmacies blame the rising costs on the high exchange rate, which has made importing medical supplies costlier.

Mrs. Bukola Adebayo, a nurse in Ibadan, stated: “Many families can no longer afford good healthcare. Drugs that used to cost N500 are now over N3,000. Even hospital consultation fees have doubled. It’s a serious crisis.”

Similarly, the education sector has been hit hard, with school fees increasing in both private and public institutions. Parents are struggling to keep their children in school as tuition, textbooks, and other academic materials become more expensive.

Mr. Ejima Eze, a father of four in Enugu, voiced his concerns: “My first child just got admission into university, and the tuition has nearly tripled from what my cousin paid three years ago. We are struggling to pay fees, and we haven’t even considered books and accommodation costs.”

Besides the foregoing, it is not an exaggeration to opine that business owners are feeling the pinch.  This is as It is not only consumers who are affected, business owners are also feeling the economic strain. Many small and medium enterprises (SMEs) struggle to keep their operations afloat as they battle rising costs of production, high taxes, and fluctuating exchange rates.

Madam Rose Okonkwo, a bakery owner in Benin City, lamented: “The price of flour, sugar, and butter has increased drastically. Before, I could produce and sell at reasonable prices, but now, I have had to increase the price of bread, and customers are complaining. We are all suffering.”

Even tech entrepreneurs are not spared. John Uchenna, who runs a small phone accessories business in Onitsha, said: “Importing accessories has become too expensive. The dollar rate keeps going up, and by the time my goods arrive, I have to increase prices. Customers are buying less, and business is slow.”

Economic experts argue that while the rebasing of the CPI provides a more accurate picture of economic trends, it does not necessarily mean that Nigerians are experiencing relief. Many analysts believe that the CBN’s approach focuses more on theoretical data rather than addressing the real challenges facing consumers.

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Dr. Akinwunmi Adebayo, an economist and policy analyst, said: “The drop in inflation does not automatically translate to lower prices. It only means that the rate at which prices are increasing has slowed down slightly. But when the cost of living is already high, a slight slowdown doesn’t mean affordability for the average Nigerian.”

Concerning the question about what can be done, Mr. Gabriel Ndimele, and economist said “To bridge the gap between economic policy and consumer realities, the government should take more proactive measures to tackle the root causes of high prices. 

Ndimele explained that investing in local food production and supporting farmers with subsidies can help stabilize food prices, and also that implementing policies that boost the local currency can help reduce import costs and inflationary pressure.

In a similar vein, he said, “Ensuring that fuel prices are stabilised and encouraging alternative transport solutions can reduce commuting expenses”.

He added that reviewing minimum wage policies to reflect the economic reality can help citizens cope better with high costs of living, and from the viewpoint of price control measures, he said the government can enforce policies to prevent price gouging and exploitation by traders and landlords.

While the CBN insists that inflation has dropped based on rebased metrics, the reality for millions of Nigerians tells a different story. The cost of living remains alarmingly high, making daily survival a struggle for the average consumer. Unless the government takes decisive action to address the economic challenges facing its citizens, the gap between official statistics and lived experiences will only continue to widen.

For now, many Nigerians can only hope that the ‘inflation drop’ will soon reflect in their daily expenses, and not just in statistical reports from Abuja.

The Standards Organisation of Nigeria (SON) has once again proven its mettle in regulatory excellence, earning a ‘Mature’ status in the latest Monitoring and Evaluation (M&E) System Assessment conducted by the Federal Ministry of Budget and Economic Planning. This significant recognition, which places SON among the top-performing federal agencies, has been met with widespread applause from industry stakeholders, government officials, and the general public.

The assessment, which evaluated 48 federal agencies, examined key parameters, including strategic alignment with national policies, the existence of functional M&E units, and the effective utilisation of evaluation data to enhance service delivery. 

SON’s classification in the highest category underscores the robustness of its monitoring and evaluation frameworks, as well as its unwavering commitment to efficiency, accountability, and evidence-based decision-making.

SON’s attainment of this prestigious recognition is widely attributed to the strategic leadership of its Director-General, Dr. Ifeanyi Chukwunonso Okeke. Under his stewardship, the agency has reinforced its internal monitoring and evaluation processes, ensuring that performance tracking and regulatory oversight remain top priorities. His dedication to institutional efficiency has not gone unnoticed, with many stakeholders commending his efforts.

“SON’s recognition in this category is a testament to the hard work and visionary leadership of Dr. Okeke. It is evident that his drive for transparency and effectiveness is yielding results,” remarked Dr. Bolanle Adeyemi, an economic analyst.

The Policy, Research, and Statistics (PRS) Department has also been instrumental in securing this recognition. The department’s unwavering commitment to data-driven decision-making and structured evaluation frameworks has significantly contributed to SON’s ability to meet national M&E standards.

Stakeholders across various sectors have lauded SON’s achievement, recognising the impact of its monitoring and evaluation structures on service delivery and regulatory efficiency.

“This is a well-deserved milestone for SON. It demonstrates the agency’s capacity to implement rigorous monitoring mechanisms and make data-backed decisions, which ultimately benefit consumers and industries alike,” said Mr. Ahmed Bello, a manufacturing sector expert.

Similarly, consumer rights advocate Mrs. Grace Nwankwo expressed her satisfaction with the agency’s progress: “SON plays a crucial role in ensuring the safety and quality of products in Nigeria. This recognition reinforces public confidence in its ability to uphold standards and protect consumer interests.”

As SON basks in the success of this milestone, the agency remains committed to sustaining and improving its monitoring and evaluation frameworks. Every department and staff member is encouraged to uphold the core values of efficiency, accountability, and regulatory excellence.

“We are not resting on our laurels,” stated Dr. Okeke. “This recognition serves as motivation to further enhance our internal processes, align with national development goals, and continue our mission of ensuring standardization and quality assurance in Nigeria.”

With this latest achievement, SON has reinforced its position as a leading regulatory body in Nigeria, setting a benchmark for other federal agencies. As the agency continues to champion standardisation and consumer protection, stakeholders eagerly anticipate further advancements in its monitoring and evaluation strategies.