Nigerians still groan under cost-of-living crisis amid inflation drop

A few days ago, the National Bureau of Statistics (NBS) announced that Nigeria’s inflation rate had dropped to 24.48% in January 2025, down from 34.80% in December 2024. The news was met with applause from government officials and pro-government supporters who saw it as a sign of economic recovery.

“Tinubunomics continues to impact positively on both the economy and Nigerian citizens. Price inflation of most food stuff is being reversed. Prices of major foodstuffs are dropping. PMS prices are stabilizing,” Sunday Dare, one of spokespersons to President Bola Tinubu, said on X last week.

However, the reality is different on the streets, food prices remain high, transportation costs continue to rise, and families still struggle to afford basic necessities.

At first glance, a drop in inflation should be good news, signaling relief for consumers. But in reality, it simply means that prices are rising at a slower rate, not that they are coming down. The cost of goods and services that had surged due to inflation has already set a new baseline, making it difficult for consumers to notice any difference in their daily expenses.

For instance, a 50kg bag of rice that sold for N100,000 in December 2024 now costs between N80,000 to N90,000, it was sold for N60,000 this time last year.

While there is a slight reduction in some certain items, many commodities are still stubbornly expensive. This is why many Nigerians find it hard to believe the official inflation figures, they do not translate into tangible relief.

“A lower inflation rate may seem positive, but it does not automatically improve living standards. Prices are still rising, wages remain stagnant, and unemployment is high, keeping real incomes under pressure,” the Lagos Chamber of Commerce and Industry (LCCI) said in a statement.

“For most Nigerians, essential costs like food and transportation remain high, meaning living conditions will not improve unless there is a real reduction in the cost of necessities.”

Read also: The cost of living crisis in Nigeria: A nation on the brink

Rebasing: A technical shift, not a real-life impact

The drop in inflation came after the NBS rebased its calculations, a standard statistical exercise meant to better reflect current economic conditions. Rebasing adjusts the weighting of goods and services in the inflation basket, ensuring that it captures modern consumption patterns.

For example, if Nigerians now spend more on telecommunications and technology than they did a decade ago, those sectors will have greater influence in inflation calculations. However, the process does not change the cost of living, it only presents a different statistical picture.

Despite the official numbers, many Nigerians are living paycheck to paycheck, struggling to afford food, transport, and rent. The cost of essential goods has skyrocketed in recent months due to factors like: High exchange rates; despite the recent stability in naira to dollar rate, the naira’s depreciation is still the major reason for increased import costs, pushing up prices of imported goods.

The cost of production and transportation is still stubbornly high due to fluctuating fuel prices and energy cost, affecting everything from food to household items and transportation.

“The cost of transportation is still an issue,” said Adewale Ayobami, a Lagos-based banker. “My t-fare doubled in the last one year.”

One of the key reasons why the masses feel no relief from the inflation drop is stagnant wages. While prices have risen dramatically over the past year, salaries have remained largely unchanged.

“Despite all that has happened in the last two years, my salary only increased by N10,000,” Olabisi, a Lagos based teacher, lamented.

While the NBS’s inflation report paints a picture of economic improvement, the average Nigerian is yet to feel any real difference. Prices remain high, wages stagnant, and everyday struggles persist. Until policies directly address the root causes of inflation and cost-of-living pressures, the disconnect between government figures and street reality will continue to widen.

For now, many Nigerians can only hope that beyond the numbers, real economic relief will soon reach their homes and pockets.