Despite Nigeria recording its seventh consecutive month of disinflation, economists and financial analysts warn that the easing inflation trend has provided little or no relief to households struggling with high living costs.

The National Bureau of Statistics (NBS) reported that headline inflation slowed to 16.05% in October 2025, down from 18.02% in September, marking one of the steepest single-month declines this year. Food inflation also moderated to 13.12%, compared with 16.9% the previous month.

However, experts insist these improved figures do not reflect the economic reality for millions of Nigerians.

‘Disinflation Without Welfare Gains’ — CPPE
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the latest figures have not translated into tangible cost-of-living relief, as price pressures remain high across essential sectors.

“Inflationary pressures are still elevated in critical household sectors—including food, transportation, housing, utilities, education, and health—which collectively account for 84% of inflation,” Yusuf explained.

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

“The full welfare benefits are yet to be felt by households due to these persistent structural constraints,” Yusuf added. He emphasized the need for deeper and sustained reforms across key sectors, supported by coordinated monetary, fiscal, and structural policies, to turn statistical gains into real economic progress.

‘NBS Inflation Figures Are Flawed’ — Former CIBN President
Mazi Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria (CIBN), said the October inflation report does not reflect Nigerians’ real-life experiences.

He claimed the country’s true inflation rate is significantly higher than official figures suggest. “The NBS inflation figure is flawed. In real terms, inflation may be as high as 29%,” Unegbu said, citing the rising costs of food, rent, transportation, fuel, and other essentials.

Why Nigerians Still Feel No Relief — Prof. Oyedokun
Economist and university don Prof. Godwin Oyedokun explained that most Nigerians feel no impact from the inflation slowdown because the structural drivers of the cost-of-living crisis remain intact.

He highlighted six key reasons:

Prices are still rising – A slower inflation rate does not mean prices are falling; food, transport, energy, and rent remain historically high.

Stagnant incomes – Wages, pensions, and SME earnings have not kept pace with inflation, weakening purchasing power.

Unresolved cost drivers – Exchange-rate volatility, high energy costs, logistics inefficiencies, insecurity in food belts, and high interest rates continue to fuel price increases.

Inflation expectations – Businesses anticipate further price hikes and adjust prices upward in advance.

State-to-state variations – Some states still face much higher food and transportation inflation than the national average.

Poverty overshadows data – High unemployment and widespread poverty mean even a slowdown in inflation has limited impact on household welfare.

“Ultimately, Nigerians have yet to feel relief because absolute price levels—not just the rate of change—remain painfully high, and the structural conditions driving hardship persist,” Prof. Oyedokun concluded.