PHOTO FILE: Prof Adebayo Adelowokan

Nigeria’s inflation rate has slowed for the fifth consecutive month, dropping to 20.12 per cent in August, yet economists warn that the relief remains largely statistical as households continue to grapple with high food prices and rising living costs. 

Speaking on Frontline, a current-affairs programme on Eagle 102.5 FM in Ilese-Ijebu, economic analyst, Professor Adebayo Adelowokan, in a panel discussion alongside Honourable Adebowale Ojuri and Dr Bayo Ayanga, said the government’s contractionary stance, food supply conditions and external shocks are shaping the trajectory of prices, while also debating whether new refining capacity poses any risk of monopoly.

Associate Professor Adebayo Adelowokan explained that the easing of inflation from 21.88 per cent in July to 20.12 per cent in August was a marked improvement from peaks of over 30 per cent before the economy was rebased. He attributed the slowdown to contractionary monetary policies and the onset of the harvest season, noting that food prices remain the biggest driver of inflation. While describing the trend as a positive sign, he stressed that a sustainable rate should be single-digit and warned that Nigeria’s economy is still highly exposed to external shocks such as global energy volatility and fuel importation.

“Progress on paper does not in any way translate to progress on the streets of Nigeria; ordinary Nigerians are still hungry,” Adelowokan said, questioning whether the government’s interventions, including over ₦330 billion released for vulnerable citizens, were reaching those who truly needed them.

PHOTO FILE: Hon. Adebowale Ojuri

Honourable Adebowale Ojuri echoed the point that the decline, though encouraging, is slow to translate into real benefits for citizens. “We dream but we do not have time enough to build what this dream needs,” he remarked, adding that the tight link between inflation and interest rates makes it difficult to ease monetary policy rapidly without destabilising the economy.

The panellists also highlighted the Monetary Policy Committee’s (MPC) reluctance to lower rates despite easing inflation, noting that the CBN had consistently pegged interest rates across recent meetings. Adelowokan explained that this reflects the Bank’s preference for contractionary measures to curb inflationary pressures, urging the government to take deliberate actions in areas it can control to maintain macroeconomic stability.

PHOTO FILE: Comrade Bayo Ayanga

Beyond monetary issues, Dr Bayo Ayanga addressed claims that the Dangote Refinery was monopolising the downstream oil sector. He dismissed the allegation, insisting that the ownership of a major facility does not equate to controlling the market. “The Federal Government of Nigeria cannot be saying or claiming that Aliko Dangote or even his company is trying to monopolise the sector,” he said, adding that refining capacity remains open to other investors.

The programme concluded with the shared view that Nigeria’s macroeconomic indicators are slowly improving, but the government must sustain deliberate policies to consolidate the gains and ensure that easing inflation figures translate into genuine relief for ordinary citizens.