The Organised Private Sector (OPS) has expressed concerns over the reported decline in Nigeria’s inflation rate, which contradicts the economic situation faced by businesses and consumers across the country.
On Monday, the National Bureau of Statistics (NBS) released its Consumer Price Index, revealing a drop in headline inflation to 32.15% for August 2024, down from 33.40% in July. This 1.25% decline marks the second consecutive month of reduced inflation rates.
However, the OPS remains skeptical, citing rising commodity prices and fuel costs as evidence of worsening economic conditions. Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), questioned the accuracy of the NBS data, saying it does not align with the increasing costs faced by businesses.
“Contrary to NBS reports, prices of goods and services have doubled, even tripled in some cases, driven by the soaring costs of petroleum products,” Oye remarked, referencing the Nigeria National Petroleum Company Limited’s fuel price hike in northern Nigeria.
The OPS highlighted that the ripple effect of high fuel prices has affected transportation, food, and other essential goods, which contradicts the reported inflation decrease. The group also criticized the Central Bank of Nigeria’s monetary policies, including interest rate hikes, for failing to manage inflation effectively.
The National President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, echoed this sentiment, stating that the reported decline is inconsistent with rising living costs, particularly due to increases in petrol prices.
In contrast, Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, suggested that the inflation dip aligns with market expectations, noting that petrol price hikes became more pronounced in September, not August.
Despite differing views, OPS leaders are urging the government to address structural economic challenges driving inflation rather than relying solely on data that they deem questionable.
