The Centre for the Promotion of Private Enterprise (CPPE) and financial analyst Prof. Godwin Oyedokun have explained that Nigeria’s inflation dropped to 32.15 percent in August due to the seasonal price impact on some food items.
CPPE’s Director, Muda Yusuf, and financial analyst Oyedokun disclosed this in separate interviews with DAILY POST, reacting to Nigeria’s inflation data for August.
This comes as data from the National Bureau of Statistics showed that headline and food inflation dropped by 1.25 percent and 2.1 percent to 32.15 percent and 37.52 percent, respectively, in August.
Reacting, CPPE noted that although some food prices eased, the prices of the majority of goods remain high.
According to Yusuf, a slight decline in prices for yams, tomatoes, and other items due to seasonality is the reason for the moderation in August inflation.
However, CPPE blamed the high prices of most goods in Nigeria on the depreciation of the Naira in the foreign exchange market, which stood at N1,546.41 per dollar in the official market.
“We are beginning to see the impact of seasonality on the prices of some food products, especially tomatoes, pepper, and yams.
“I think this has to do with the factor of seasonality. Overall, the prices of many products are still high, though a few have witnessed slight moderation.
“For the products with high prices, I think the bigger issue is the exchange rate. In the past week, the country’s exchange rate has deteriorated, which is why we have not seen significant moderation.
“When we say there is moderation in inflation, it doesn’t mean there is a drop in prices but rather a drop in the rate of increase in prices. If the rate of increase is declining, we say inflation is declining.
“But what the citizens are hoping to experience is a drop or decline in prices, and that has only happened for a few products. For many other products, we haven’t seen that yet.”
According to him, the operationalization of the Dangote Refinery may lead to a drop in energy prices, particularly petrol and automotive gas oil.
“We are hoping that with the coming on board of the Dangote Refinery, we could see a drop in energy prices, particularly petrol or maybe diesel, because energy prices are significant drivers of goods and services.
“The reduction in the dependence on the importation of petroleum products could have an impact on the macroeconomic environment.
“I must admit that the prices of goods and services remain high,” he said.
On his part, Prof. Godwin Oyedokun, a don at Lead City University in Ibadan, explained why the drop in inflation has not translated into a significant improvement in the living conditions of many Nigerians.
According to him, this disconnect between official figures and perceived reality can be attributed to several factors: persistent structural issues, localized variations (with some areas experiencing even higher levels of inflation), psychological impact, time lag, and government policies.
He added that investments in infrastructure and social safety nets will be crucial in ensuring that the decline in inflation translates into improved living standards for all Nigerians.
“It’s also essential to continue monitoring the inflation rate and its impact on the population. While the official figures provide valuable insights, it’s equally important to gather feedback from individuals and communities to understand their lived experiences and the challenges they continue to face,” he said.
Why Nigeria’s inflation dropped in August – CPPE, Oyedokun
