Nigerians Are Yet To See Evidence – Abati Questions Nigeria’S 15% Inflation Figure

Dr. Reuben Abati, the veteran journalist and former presidential aide, has expressed skepticism over Nigeria’s reported decline in inflation, noting that the decrease has yet to bring tangible relief to Nigerians’ cost of living.

Speaking on Arise Television’s Morning Show on Friday, Abati questioned the credibility of the 15.15 per cent inflation rate announced by the National Bureau of Statistics, NBS, for December, suggesting it was influenced by changes in the rebasing methodology.

According to him, while authorities and international partners such as the International Monetary Fund, IMF, have argued that the new inflation measurement would deliver tangible benefits to Nigerians, such outcomes are yet to be seen.

Abati noted that although the NBS has reported consecutive declines in inflation, the impact has not been reflected in everyday expenses, particularly food prices.

He said economists often argue that inflation data takes time to affect living conditions, but maintained that the delay has been too long, adding that a real sign of improvement would be a noticeable reduction in food inflation.

Abati said: “This thing about inflation, which they say is now 15.15% as of December, is based on some kind of, you know, creativity. They say rebasing methodology has been changed.

“Now, the IMF resident rep say, well, this rebasing, this new methodology, will translate into concrete benefits in terms of the cost of living for Nigerians.

“Well, inflation has been going down according to the Bureau of Statistics, consecutively. We have not yet seen the effect of the evidence in terms of the cost of living.

“The Economists, those who know the subjects, they say, okay, it takes time. It’s taking too long a time when we begin to see the effect. And food inflation comes down, that’s when we believe that this CPI is having effect. That’s why I think the Manufacturers Association are also very concerned.”