Dr Ope Banwo has urged Nigerians to distinguish between a decline in the inflation rate and an actual reduction in the prices of goods and services.
Banwo, Mayor of Fadeyi and founder of Naija Lives Matter, made the observation while commenting on President Bola Tinubu’s Independence Day address and the administration’s claims of progress on key economic indicators.
According to Banwo, the decline in inflation is a positive development, but it should not be interpreted to mean that the prices of food, transport and other essential commodities have returned to previous levels.
He explained that when inflation falls, prices may continue to rise, but at a slower rate.
“Lower inflation does not mean prices have gone back down. It means prices are generally rising more slowly,” Banwo said.
He said the distinction was particularly important for households that had experienced substantial increases in the cost of living over the past few years.
Banwo argued that the government’s economic policies should therefore address both inflation and the purchasing power of Nigerians.
The International Monetary Fund has projected that Nigeria’s inflation will remain elevated in 2026, with its June assessment noting that higher global food, fuel and fertilizer prices could put additional pressure on domestic prices.
The Fund also said inflation had been on a declining trend before external price pressures caused it to rise to 15.4 per cent year-on-year in March 2026, while projecting a return to the disinflation path later in the year.
Banwo said continued efforts to bring inflation down were necessary, but stressed that the broader objective should be to restore purchasing power and improve household welfare.
He said this would require policies that increase food production, improve transportation and logistics, support businesses and expand employment opportunities.
According to him, Nigerians are ultimately concerned not only with the inflation rate reported in economic statistics but also with how much food, rent, transport and other necessities cost.
Banwo said the government should therefore communicate economic improvements in a way that makes clear the difference between slower price increases and actual price reductions.
He also urged policymakers to continue pursuing measures capable of improving domestic production and strengthening the supply of essential goods.
The economist-style explanation, he said, should be matched by policies that make the benefits of lower inflation increasingly visible in households and businesses.
Banwo added that sustained progress on inflation would be more meaningful if it was accompanied by stronger incomes and improved purchasing power.
He said the ultimate objective should be an economy in which macroeconomic stability and improvements in household welfare advance together.