Connect with us

News

Why Nigerians Are Not Feeling Inflation Drop – Economists

Published

on

Despite Nigeria recording its seventh consecutive month of disinflation, economists and financial analysts have raised concerns that the easing inflation trend has brought little or no relief to Nigerians and households already overwhelmed by high living costs and economic hardship.

The National Bureau of Statistics (NBS) reported that headline inflation slowed to 16.05 per cent in October 2025, down from 18.02 per cent in September, one of the strongest single-month declines this year.

Food inflation also moderated to 13.12 per cent, compared to 16.9 per cent in the previous month.

Advertisement

But economists and analysts insist the improved figures do not reflect the economic reality facing millions of Nigerians.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the gains from the latest figures have not translated into real cost-of-living relief because price pressures remain elevated across essential sectors.

READ ALSO:Why U.S. Military Intervention In Nigeria Will Be Messy, Says Adeyemi

Advertisement

Inflationary pressures remain elevated in critical household sectors—including food, transportation, housing, utilities, education, and health—which jointly account for 84 percent of inflation,” Yusuf noted.

He attributed the limited impact of disinflation to persistent structural challenges such as high logistics costs, energy constraints, insecurity in food-producing regions and climate-related disruptions that continue to suppress supply.

According to him, “the full welfare benefits are yet to be sufficiently felt by households due to persistent structural constraints.”

Advertisement

Yusuf advised that deeper and sustained reforms across key sectors—supported by coordinated monetary, fiscal and structural policies—are necessary to turn statistical improvements into real economic progress.

‘NBS Inflation Figures Are Flawed’ — Former CIBN President, Okechukwu

In an interview with DAILY POST, Mazi Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria (CIBN), said the October inflation report is detached from the real-life experience of Nigerians.

Advertisement

READ ALSO:Nigerian Military Kills 50 Jihadists During Army Base Raids

Unegbu insisted the country’s true inflation rate is significantly higher than official figures suggest.

The inflation figure by the National Bureau of Statistics is flawed because it does not reflect reality. In real terms, the country’s inflation is as high as 29 percent,” he said.

Advertisement

He argued that the persistent rise in the cost of food, rent, transportation, fuel, and other essentials shows that the declining inflation rate “does not make sense” to the average Nigerian.

Why Nigerians Still Feel No Relief — Oyedokun

An economist and a university don, Prof Godwin Oyedokun, said most Nigerians feel no impact from the inflation slowdown because the structural drivers of the cost-of-living crisis remain intact.

Advertisement

READ ALSO:US Lawmakers Demand Answers From Trump Administration Over Chinese Chemical Shipments To Iran

He outlined six reasons why Nigerians are yet to feel the impact of inflation: “Prices are still rising— just more slowly- A drop in inflation does not mean prices are falling. Nigerians are still paying historically high amounts for food, transport, energy and rent.

“Incomes remain stagnant- Wages, pensions and SME earnings have failed to keep up with inflation for two years, weakening purchasing power.

Advertisement

“Key cost drivers remain unresolved- Exchange-rate volatility, high energy costs, logistics inefficiencies, insecurity in food belts and elevated interest rates continue to fuel price increases.

READ ALSO:Two Nigerians Sentenced For Attempting To Obtain Ghana Cards With False Identities

Inflation expectations are still high- Businesses expect prices to rise further and therefore adjust prices upward in advance.

Advertisement

State-to-state variations distort relief- Some states still record much higher food and transportation inflation than the national average.

“Poverty levels overshadow economic data- With high unemployment and widespread poverty, even a slowdown in inflation does little to improve household welfare.”

Prof. Oyedokun concluded that “Nigerians have yet to feel any relief because the level of prices— not just the rate of change— remains painfully high, and the structural conditions driving hardship persist.”

Advertisement

News

Nigeria Army Alone Cannot Defeat Bandits — Sheikh Gumi

Published

on

Islamic cleric Sheikh Ahmad Gumi has said the Nigerian military cannot defeat bandit groups through force, arguing that dialogue remains the only path to resolving insecurity in the northwest and other regions.

In an interview with the BBC, Gumi stated that modern armies worldwide struggle against guerrilla fighters, and Nigeria is no exception.

“But even the military says that in dealing with this civil unrest and criminality, only 25% is kinetic action; the rest depends on the government, politics, and local communities. The military cannot do everything,” he said. “Where have you ever seen the military defeat guerrilla fighters? Nowhere.”

Advertisement

His comments come as President Bola Tinubu’s administration introduces sweeping security reforms, including changes in military leadership and a nationwide security emergency aimed at tackling violent groups responsible for kidnappings, extortion and rural attacks.

READ ALSO:Gumi Reacts As Saudi Bars Him From Hajj

Addressing accusations of maintaining ties with bandit leaders, Gumi said he has had no contact with them since 2021, when the federal government formally designated the groups as terrorists. “I never went there alone,” he said.

Advertisement

“It was in 2021 when I was trying to see how we could bring them together. But unfortunately, the government at the time, the federal government, was not interested. They declared them terrorists, and since that time we have completely disengaged from all contact with them.”

Despite criticism that his advocacy emboldens armed groups, Gumi maintained that negotiation with non-state actors is a global practice. “When they say we don’t negotiate with terrorists, I don’t know where they got that from,” he said. “It is not in the Bible, it is not in the Quran. America had an office negotiating with the Taliban in Qatar. Everyone negotiates with outlaws if it will stop bloodshed.”

He described the armed groups as largely “Fulani herdsmen” engaged in what he called an “existential war” linked to threats to their traditional livelihoods of cattle rearing. “They want to exist. That is their life.

Advertisement

READ ALSO:Insecurity: What Sheikh Gumi Told Me After Visiting Bandits Hideouts — Obasanjo

They know where to graze and how to care for their cattle,” he said, adding that the crisis has grown from farmer–herder tensions into widespread criminality.

Gumi has long faced public backlash for his engagements with bandits and for remarks such as his earlier claim that kidnapping schoolchildren is a “lesser evil” than killing soldiers.

Advertisement

Meanwhile, Gumi, in the same interview, also restated his view that the abduction of schoolchildren by armed groups constitutes a “lesser evil” than attacks on Nigerian soldiers, while emphasising that both acts are unacceptable.

“I think part of what I said then is correct and part of it wrong,” Gumi said, referring to his controversial 2021 statement.

“Saying kidnapping children is a lesser evil than killing soldiers, definitely it is lesser. But all of them are evil. All evils are not the same.”

Advertisement
Continue Reading

News

How France Helped Benin Foil Coup Detat

Published

on

France helped the authorities in Benin thwart a coup attempt at the weekend, an aide to President Emmanuel Macron said Tuesday, revealing a French role in a regional effort that foiled the latest bid to stage a putsch in West Africa.

Macron led a “coordination effort” by speaking with key regional leaders, the aide, asking not to be named, told reporters, two days after Sunday’s failed coup bid.

France — at the request of the Beninese authorities — provided assistance “in terms of surveillance, observation and logistical support” to the Benin armed forces, the aide added.

Advertisement

Further details on the nature of the assistance were not immediately available.

A group of soldiers on Sunday took over Benin’s national television station and announced that President Patrice Talon had been deposed.

READ ALSO:

Advertisement

But loyalist army forces ultimately defeated the attempted putsch with the help of neighbouring Nigeria, which carried out military strikes on Cotonou and deployed troops.

West Africa has endured a sequence of coups in recent years that have severely eroded French influence and presence in what were French colonies until independence.

Mali saw coups in 2020 and 2021, followed by Burkina Faso in 2022 and then Niger in 2023. French forces that had been deployed in these countries for an anti-jihadist operation were consequently forced to withdraw.

Advertisement

A successful putsch in Benin, also a former French colony, would have been seen as a new blow to the standing of Paris and Macron in the region.
Guinea-Bissau, a former Portuguese colony, was meanwhile rocked by a coup in November after elections which led to military authorities taking over.
– ‘Caused serious concern’ –

READ ALSO:

On Sunday, Macron spoke with Talon as well as the leaders of top regional power Nigeria and Sierra Leone, which holds the presidency of West African regional bloc ECOWAS, the Elysee aide said.

Advertisement

The situation in Benin “caused serious concern for the president (Macron), who unequivocally condemned this attempt at destabilisation, which fortunately failed”, said the aide.

ECOWAS has said troops from Ghana, Ivory Coast, Nigeria and Sierra Leone were being deployed to Benin to help the government “preserve constitutional order”.
“Our community is in a state of emergency,” Omar Alieu Touray, president of the Economic Community of West African States (ECOWAS) said on Tuesday, highlighting the jihadist threat in the region as well as coups.

The bloc had threatened intervention during Niger’s 2023 coup that deposed president Mohamed Bazoum — an ally of Macron — but ultimately did not act.
France also did not carry out any intervention against the Niger coup.
“France has offered its full political support to ECOWAS, which made a very significant effort this weekend,” said the aide.

Advertisement

READ ALSO:

At least a dozen plotters had been arrested and all hostages, including high-ranking officers, had been released by Monday, according to loyalist military sources.

Talon made his own television appearance late Sunday, assuring the country that the situation was “completely under control”.

Advertisement

Talon, 67, is due to hand over the reins of power in April after the maximum-allowed two terms leading Benin, which in recent years has been hit by jihadist violence in the north.

On Tuesday, former Beninese president Thomas Boni Yayi, whose opposition Democrats party has been excluded from next year’s presidential elections, condemned the failed coup.

“I condemn most vigorously and strongly condemn this bloody and shameful attack on our country,” said Boni Yayi, a former chairman of the African Union who served as Benin’s president from 2006 to 2016.

Advertisement

The transfer of state power “responds to a single cardinal and unconditional principle: that of the ballot box, that of the people, that of free and transparent elections”, Boni Yayi added in a video posted on Facebook.
(AFP)

Continue Reading

News

Reps Panel Grills TCN Officials Over Poor Grid Stability

Published

on

The House of Representatives Ad-Hoc Committee investigating multi-billion-naira power sector reforms on Tuesday interrogated officials of the Transmission Company of Nigeria (TCN), exposing fresh gaps between Nigeria’s installed power capacity and the electricity actually delivered to homes and industries.

Appearing before the committee chaired by Hon. Ibrahim Aliyu, TCN Managing Director, Dr. Sule Ahmad Abdulaziz, dismissed widely circulated claims that Nigeria currently generates 13,000 megawatts of electricity. He stressed that the figure reflects installed capacity—not what the national grid has ever produced.

The highest ever generated this year was 5,801MW,” Abdulaziz said. “Nigeria has never produced 13,000MW on the national grid. That number is installed capacity, not generated capacity.”

Advertisement

He explained that until April 2024, the National Control Centre responsible for daily generation and dispatch records was under TCN’s direct supervision, giving the company access to “accurate and verifiable” data.

READ ALSO:Collapsed National Grid Restored – TCN

Responding to scrutiny from committee member Hon. Abubakar Fulata, who questioned why only about 6,000MW is typically wheeled despite supposedly higher available generation, Abdulaziz insisted TCN had never failed in transmission.
“Our transmission capacity today is 8,600MW,” he stated. “At no time has power been generated that TCN could not evacuate. Anyone claiming otherwise should produce the data.”

Advertisement

On the company’s financial health, TCN’s Executive Director of Finance told lawmakers the company is weighed down by massive debts owed by electricity distribution companies (DisCos), revealing: N217 billion in electricity subsidy debt (Jan 2015–Dec 2020) taken over by the Federal Government
N450 billion owed by DisCos from Jan 2021 to date.

Clarifying controversies around grid instability, a senior TCN system operations official said the company recorded 11 grid collapses, contrary to the 22–23 often quoted.

Giving a breakdown of causes, he explained that six collapses were caused by generation issues, including gas shortages, four linked to vandalism of transmission towers, leading to sudden loss of load, one triggered by distribution network failures, often due to rainfall-induced feeder trips.

Advertisement

READ ALSO:Blackout Looms As Vandals, Again, Attack Transmission Line – TCN

He emphasised that all three segments generation, transmission and distribution can trigger system collapse, adding that the Nigerian Electricity Regulatory Commission (NERC), with Central Bank support, had implemented Service Level Agreement (SLA) interventions to address systemic bottlenecks.

TCN officials further disclosed the company has over 100 ongoing transmission projects, many of which are 65%–90% complete but stalled for lack of funding.
Power infrastructure cannot be energised at 99%. It must be 100% complete,” an official noted.

Advertisement

If outstanding debts are paid, we can finish priority projects and strengthen the grid.”

He added that TCN aims to expand wheeling capacity to 10,000MW by March next year through network upgrades and simulation-based grid optimisation.

Committee chairman Hon. Ibrahim Aliyu said the presentations had clarified earlier misconceptions about TCN’s role in the sector’s failures but expressed concern over the slow expansion of critical infrastructure, pledging the parliament intervention to address the anomaly in due course.

Advertisement
Continue Reading

Trending