Sunday Dare, President Tinubu’s Special Adviser on Media and Public Communication, disclosed this in a statement on Thursday.
The Bola Tinubu Presidency has announced that the prices of foodstuffs and other essential commodities may never revert to their levels before the removal of fuel subsidies, despite ongoing economic reforms intended to stabilise the economy.
Sunday Dare, President Tinubu’s Special Adviser on Media and Public Communication, disclosed this in a statement on Thursday.
Dare noted that although Nigerians have experienced economic hardship following the removal of fuel subsidies, key indicators suggest that the economy is gradually recovering.
The removal of fuel subsidies in May 2023 led to an immediate surge in inflation, as the cost of transportation, goods, and services skyrocketed. The impact was felt across all sectors, with food prices experiencing the sharpest rise.
Many Nigerians have since struggled with the high cost of living, prompting calls for government intervention.
However, in his statement on Thursday, Dare pointed to recent data from the National Bureau of Statistics (NBS), which showed that Nigeria’s inflation rate has declined from 34.8% to 24.48% year-on-year after rebasing.
According to the NBS report, food inflation stands at 26.08%, core inflation at 22.59%, urban inflation at 26.09%, and rural inflation at 22.15%. The rebasing of the Consumer Price Index (CPI), which updated the price reference period to 2024 and the weight reference period to 2023, was described as a crucial step in aligning Nigeria’s economy with current realities.
Dare emphasised that while prices may not revert to pre-subsidy levels, they are beginning to stabilise across various sectors.
“Yes, prices are not back to the pre-subsidy removal regime. They probably may never be. But prices of foodstuffs and other services are dropping across the board. Multiple independent market surveys have confirmed this development,” he stated.
He argued that rebasing is a globally recognised economic practice that enhances the accuracy of economic data, enabling better policy decisions.
“Rebasing injects precision into policymaking by providing a panoramic view of a country’s economic terrain, exposing both its strong and weak sectors. Vital information to guide investors is also provided,” Dare added.
The Tinubu administration has defended its economic policies, insisting that ongoing reforms in the oil sector and the shift towards local refining have started yielding positive results.
Nigeria’s crude oil production has reportedly exceeded its quota, now standing at 1.75 million barrels per day, reducing dependence on petroleum imports and alleviating pressure on foreign exchange.
The government also cited a recent Bloomberg Africa report, which acknowledged that “Nigeria’s fortunes appear to be looking up after nearly two years of painful economic reforms and investors are taking notice.”
The report further suggested that Nigeria could regain its status as Africa’s largest economy when rebased Gross Domestic Product (GDP) figures are released next month, potentially pushing the GDP close to $500 billion.
While acknowledging the difficulties Nigerians have faced, Dare maintained that the reforms were necessary for long-term economic stability.
“Under President Tinubu’s watch, we are seeing the headwinds abating and a new economic tailwind in favour of economic reforms,” he asserted.
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