Nigeria’s inflation rate eased again in August 2025, extending its months-long slowdown and stirring debate among economists, businesses and citizens. While experts welcomed the softer inflation as a sign of improving macroeconomic stability, many Nigerians questioned whether the data reflect reality on the ground, where household budgets remain stretched.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), told Nairametrics that the consistent deceleration indicates the economy is adjusting to government reforms. “It’s a very good development and a reflection that the macroeconomic environment is getting better and investors are beginning to adapt to the new realities,” he said. However, Yusuf cautioned that slower inflation does not necessarily mean prices are falling for everyday goods and services.
Yusuf urged the Central Bank of Nigeria (CBN) to ease its tight monetary policy by reducing the Monetary Policy Rate (MPR). According to him, high borrowing costs are still hampering production and investment. “Lower interest rates would boost investor confidence and spur growth,” he argued. His position was echoed by Dr. Ango Malari of the Society for Peacebuilding and Economic Advancement, who also highlighted the persistent problem of food inflation.
Idika Aja, Lead Analyst at Nairametrics, noted that although inflation is slowing, most Nigerians still face high prices and weakened purchasing power. “Even if prices aren’t rising as fast as before, they’re still out of reach for many Nigerians. Only improved wages will restore affordability,” Aja said, reflecting the lived reality of millions coping with stagnant incomes.
On social media, many Nigerians voiced frustration and skepticism over the government’s figures. One X user wrote, “You will soon cook this thing to 1% while Nigerians are dying of hunger… but we know the reality on the streets.” Such reactions underscore the gap between official statistics and public perception, putting additional pressure on policymakers to translate macroeconomic gains into real relief for households.
source: nairametrics