Economist Warns of Inflation Impact on Nigeria's Purchasing Power in 2026

The article delves into the analysis by economist Dr. Paul Alaj on the trajectory of inflation and its impact on purchasing power in Nigeria, particularly in 2026. Alaj identifies various types of inflation in Nigeria, including structural inflation, cost-push inflation, import inflation, and exchange rate inflation.

He emphasizes that the country's high dependence on imports, insecurity issues, and structural challenges contribute to the inflationary trends. The rise in commodity costs across sectors is expected to persist in 2026, significantly affecting household well-being and consumer purchasing power.

Alaj also highlights the challenges faced in power supply, transportation costs, regulatory bottlenecks, and market inefficiencies impacting market prices and reducing citizens' purchasing power.