Under President Tinubu’s administration, the government warns that the elevated prices of food and essential commodities may never revert to pre-subsidy levels, even as transformative economic reforms work to stabilize the nation. Special Adviser Sunday Dare disclosed on Thursday that the elimination of fuel subsidies in May 2023 triggered an immediate surge in inflation—soaring transportation, goods, and service costs have particularly pushed food prices to unprecedented heights.
Despite widespread hardships, fresh data from the National Bureau of Statistics reveals a promising decline in inflation—from 34.8% to 24.48% year-on-year—thanks to a crucial rebasing of the Consumer Price Index, which updated the price reference period to 2024 and the weight period to 2023. According to NBS figures, food inflation now stands at 26.08%, with core, urban, and rural inflation at 22.59%, 26.09%, and 22.15% respectively.
Dare acknowledged that while prices may never fully return to their pre-subsidy benchmarks, there is a notable stabilization across sectors confirmed by multiple independent market surveys. He emphasized that the globally recognized practice of rebasing injects unparalleled precision into policymaking, offering a panoramic view of the economic terrain and equipping investors with vital insights.
The Tinubu administration remains steadfast in its commitment to robust economic reforms, particularly in the oil sector. With Nigeria’s crude oil production surging to 1.75 million barrels per day—thereby reducing reliance on imports and easing foreign exchange pressures—the government is optimistic. A recent Bloomberg Africa report even hinted that Nigeria could reclaim its position as Africa’s largest economy when the rebased GDP figures are unveiled next month, potentially nearing an impressive $500 billion.
While acknowledging the short-term pain endured by Nigerians, Dare asserted that these bold reforms are indispensable for long-term stability. “Under President Tinubu’s leadership, we are witnessing the abatement of headwinds and the rise of a formidable economic tailwind,” he declared.
