Nigeria’s inflation rate eases slightly but still a worry for many citizens

Nigeria's headline inflation rate dipped slightly last month, according to data released on Thursday, but it remains stubbornly high at around 15% annually, causing concern for citizens ahead of a national election. Consumer prices rose by 14.63% year-on-year in September, a slight decline from 15.39% in August, according to the National Bureau of Statistics. Food prices, however, remained largely unchanged, staying at 19.59% in September, up from 19.57% in August.

President Bola Tinubu faces a significant challenge as he seeks re-election in January, with the lingering impact of high inflation weighing heavily on the nation. The common man is suffering, with essential goods becoming increasingly expensive, according to Michael Udoariri, a 44-year-old insurance worker with three children. Udoariri expressed his frustration at the bus stop in Lagos, noting that soaring fuel costs have forced him to abandon his car and rely on public transportation.

The Central Bank of Nigeria surprised investors last month by cutting the interest rate by 350 basis points to 23%, citing market rates diverging from the benchmark rate and the effectiveness of previous tightening measures. President Tinubu assumed office in 2023 and pursued a series of economic reforms, including the reduction of petrol subsidies and devaluing the currency to stimulate growth and strengthen public finances.

These measures have contributed to a modest uptick in economic growth, reaching an estimated 4.4% year-on-year in the second quarter. However, this growth still falls short of the 7% annual target Tinubu aims to achieve by 2027.