By Niyi Jacobs
Nigeria’s inflation slowed again in August, raising fresh debate over whether the Central Bank of Nigeria (CBN) should ease its tight monetary policy.
The National Bureau of Statistics (NBS) report showed a consistent deceleration in price growth, sparking cautious optimism among economists but leaving ordinary Nigerians unconvinced about any real relief.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said the trend reflects “increasing stability in the economy” as reforms begin to take hold. “It’s a very good development…a reflection of the fact that the economy and investors generally have fully adjusted to the realities of the reforms,” he said.
Yusuf, however, stressed that slowing inflation does not mean lower living costs. “Reduction in inflation is not the same thing as a reduction in price. What we need are targeted policies—fiscal, monetary, investment, and trade—to deal with the cost-of-living crisis,” he noted.
He and other experts believe the CBN should now consider cutting its Monetary Policy Rate (MPR), which currently stands at a record high, to ease borrowing costs for businesses and encourage investment. “Monetary policy is extremely tight at the moment. Investors are still grappling with high costs of borrowing,” Yusuf added.
Dr. Ango Malari, an analyst at the Society for Peacebuilding and Economic Advancement, also called for a rate cut, warning that high food inflation continues to squeeze households.
But Nairametrics Lead Analyst, Idika Aja, offered a sobering perspective, noting that while inflation is cooling, Nigerians’ purchasing power remains severely eroded. “Prices are still high and out of reach for many. Even if the pace of increase has slowed, survival remains a daily struggle. It will only take higher wages to make life easier,” he said.
On social media, many Nigerians reacted with skepticism, questioning why official inflation numbers appear to improve while food and transport costs remain stubbornly high.
The CBN’s next Monetary Policy Committee meeting will now face intense scrutiny, as pressure mounts on the apex bank to relax its aggressive rate stance without triggering another wave of inflationary pressure
