Experts Warn of Persistent Inflation Despite Oil Price Drop

Experts predict that Nigeria's inflation rate may remain high despite a decline in global oil prices. Factors contributing to persistent inflation include a rigid exchange rate and structural issues within the economy.

Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), noted that businesses are often reluctant to reduce prices once consumers adjust to higher costs. Economist Adelek from the University of Nigeria stated that a direct and immediate drop in prices is not expected, even with significant retreats in crude oil prices.

The operational costs for companies, including elevated energy costs and transport expenses, further complicate price adjustments. Zakari Moham from Auchi Polytechnic highlighted that the Nigerian economy faces challenges such as a depreciating naira and disruptions in food supply, which are expected to keep inflation rates high.

As of late 2024, inflation is projected to approach 35%, with only a moderate decrease to around 15% anticipated by early 2026.