By Abdulmajeed Abdullateef | NIGPOST
Despite Nigeria experiencing two consecutive years of declining inflation, many Nigerians are yet to see a significant drop in the prices of goods and services.
Renowned economist Prof. Segun Ajibola has shed light on why this is happening.
In an exclusive interview on Monday, Ajibola explained that while inflation rates have slowed down, the effects take time to reflect in everyday prices.
Inflation Drops, But Prices Remain High
The National Bureau of Statistics (NBS) recently reported that Nigeria’s headline inflation fell to 23.18%, while food inflation dropped to 23.51% in February 2025.
This decline was influenced by reduced energy costs, especially fuel, which had a ripple effect on food items, manufactured goods, and transportation.
However, Ajibola pointed out that economic principles suggest prices are “sticky downward”, meaning they do not easily decrease once they go up. Even when inflation slows, it takes time before consumers notice any real difference in the market.
What the Government Needs to Do
Ajibola emphasized that tackling inflation requires more than just monetary policies. While the Central Bank has raised interest rates to 27.50%, he believes this approach alone won’t solve the issue.
Instead, he urged the government to focus on fiscal policies—such as reducing production costs and improving infrastructure—to help bring down prices effectively.
Final Thoughts
As Nigerians continue to face economic hardships, experts stress that patience is key. While inflation figures suggest a positive trend, it may take longer before Nigerians feel the impact in their daily expenses.
In the meantime, policymakers must work on long-term solutions to ensure the benefits of lower inflation reach the masses.
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