Nigerian Private Sector Rejects Inflation Report Amid Soaring Prices

Nigeria’s Organised Private Sector (OPS) has sharply criticisedrecent reports from the National Bureau of Statistics (NBS) that suggest a drop in the country’s inflation rate, calling it a stark contradiction to the economic reality faced by businesses and citizens. The NBS, in its Consumer Price Index report released on Monday, claimed that Nigeria’s inflation rate had eased for the second consecutive month, dipping to 32.15% in August from 33.40% in July.

The business community, however, expressed disbelief at the NBS figures. Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), questioned the validity of the report, stating it does not reflect the skyrocketing costs of goods and services that have become the norm across the country.

“As the umbrella body representing Nigeria’s private sector, NACCIMA finds the NBS figures grossly at odds with the escalating cost of living and doing business,” Oye said. He highlighted the sharp increase in petroleum prices, which have driven up transportation, logistics, and production costs. Oyepointed to the Nigerian National Petroleum Company Limited’s (NNPCL) recent announcement that petrol prices from the Dangote refinery would surpass ₦1,000 per litre in northern Nigeria, a clear indication of the supply shortages and soaring fuel costs affecting the entire economy.

Fuel price hikes have created a ripple effect, causing transportation costs and the prices of essential goods, including food, to spiral. Oye noted that most Nigerians, forced to buy petrol on the black market due to scarcity, paid prices far above the official rates. He argued that this should have pushed inflation rates higher in August, not lower, as the NBS suggests.

The NACCIMA president also criticised the Central Bank of Nigeria’s (CBN) monetary tightening measures, including repeated hikes in the Monetary Policy Rate, which have failed to contain inflationary pressures. “The fact that inflation has continued to decline for two consecutive months, as claimed by the NBS, raises serious doubts about the accuracy of their data collection,” Oye added.

Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, echoed these sentiments, describing the reported inflation drop as disconnected from the struggles faced by small businesses. “Prices of goods keep climbing, and the recent increase in petrol pump prices only worsens inflation. It’s hard to understand how the NBS figures reflect a decrease,” Egbesola said.

However, not all business leaders were in agreement. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), offered a different perspective, suggesting that the NBS figures might reflect the early stages of inflation peaking. “We are slowly coming down,” he said, pointing out that the extreme petrol price surge occurred in September, not August. He tempered expectations for the remainder of the year, noting that fundamental inflation drivers, such as oil prices, exchange rates, and food availability, continue to pose challenges.

The sharp divide between the private sector’s lived experience and the government’s official statistics raises important questions about how inflation is measured and managed in Nigeria. Business leaders are now urging the government to address the root causes of the country’s economic malaise—fuel prices, exchange rate instability, and supply chain disruptions—rather than relying on questionable data that fails to reflect the hardships faced by businesses and consumers alike.

Oye’s call to action was clear: “Only through a comprehensive, evidence-based approach to tackling inflation can we restore confidence in the economy and create an enabling environment for businesses to thrive.”