Nigeria’s inflation rate has dropped for the second time in a row, leading some economists to believe the country’s economy is starting to recover. According to the National Bureau of Statistics (NBS), inflation fell to 23.18% in February 2025, down from 24.48% in January. Food inflation also declined from 26.08% to 23.51%.

Despite this positive trend, many Nigerians are still struggling with high living costs. Experts have shared their views on the situation, explaining why prices remain high and what the government needs to do next.

Experts believe there are a few reasons for this decline in inflation:

1. Improved Macroeconomic Stability – The exchange rate has become more stable in recent months, reducing inflationary pressures.
2. Lower Fuel Prices – A slight decrease in fuel costs, especially Premium Motor Spirit (PMS), has helped slow inflation.
3. Increased Food Production – Better security has allowed farmers to produce more food, contributing to lower food inflation.
4. Government Policies – Certain policies, including monetary interventions and supply chain improvements, may have helped stabilize prices.

Despite the decline in inflation, the cost of goods remains high for many Nigerians. Experts explain that:

• The Exchange Rate Is Still High – The Naira remains weak against foreign currencies, making imported goods expensive.
• Interest Rates Are High – Businesses and consumers still face high borrowing costs, which affect prices.
• Inflation Data May Not Reflect All Price Changes – Official inflation figures are averages and might not fully capture price spikes in certain goods.
• Supply Chain Costs Remain a Challenge – Distribution costs and other market factors continue to affect prices.

Economists suggest that the government should focus on:

• Bringing Down Prices of Basic Goods – Food, medicine, and cooking gas should be more affordable for Nigerians.
• Strengthening the Naira – Policies that stabilize the exchange rate will help reduce inflation in the long run.
• Encouraging Local Production – More support for farmers and businesses will improve supply and lower prices.