Modupe Olalere
Food and fuel prices have reached all-time highs, straining the budgets of regular Nigerians and causing public outrage. Food costs are rising by 3.25% month over month, and food inflation is still persistently high at 21.97% yearly, despite headline inflation easing to 22.22% in June 2025, the lowest this year.
Lagosians are suffering as the costs of everyday goods fluctuate. The prices of onions, peppers, and rice have increased significantly in recent weeks. For instance, dry onions rose 30% and peppers 16%, raising meal costs.
Fuel prices, among the highest in the world in Nigeria, significantly impact food production and transportation expenses. Currently, a litre of retail petrol costs about $2.13 (₦3,261). The elimination of fuel subsidies, high taxes, and dependence on imported refined petroleum are the primary causes of this increase. As a result, inflation is rising, and public frustration is mounting, especially as these climbing fuel prices lead to higher food costs and increased transport fares.
In Nigeria, the increasing difficulty in paying for basic needs worries people from all walks of life. Market vendors, farmers, and ordinary customers all feel the strain as individuals find it more difficult to put food on the table due to growing input and distribution expenses.
Economic Measures: Ambitions and Realities
President Bola Tinubu’s administration has made it a key goal to reduce inflation and stabilise food prices. In his New Year speech for 2025, the President vowed to raise food production significantly to help bring down the skyrocketing prices. He set an ambitious objective to slash inflation on food and medication prices from above 34% to 15%. The government introduced the National Credit Guarantee Company (NCGC) to back this initiative. This new financing platform brings together government agencies, financial institutions, and private-sector partners to collaborate effectively. The NCGC aims to broaden credit access for farmers, essential drug manufacturers, and entrepreneurs, focusing on empowering women and youth. This initiative is about boosting local production and reducing our reliance on imports.
The government also cites improvements such as a stronger naira currency and modest reductions in fuel prices as early signs of economic stabilisation. Tinubu said that with focused reforms and “God’s help,” the administration would relieve Nigerians.
Even with these commitments in place, the reality of the market shows that the impact we’re hoping for is still out of reach. According to the National Bureau of Statistics, while overall inflation is on a downward trend, food prices are still rising month after month in many areas. The varying inflation rates across regions highlight ongoing local pressures that won’t let up. In Borno, food inflation rose 47.4% year-over-year, showing substantial regional suffering, while Katsina had smaller increases.
According to the Food and Farmers’ Rights Campaign (FFRC), official assertions regarding reducing food costs are “an insult to the sensitivity of poor Nigerians.” They say structural policy choices like fuel subsidy elimination and IMF/World Bank programs have transferred costs onto low-income people without proper protections. The FFRC claims that while government neoliberal economic policies have favoured elites, they have not improved public affordability.
A more detailed picture of the market comes from analysis. Overall, food prices remain high for many people, even though certain cities have reported small drops in the pricing of several commodities. A survey of food markets in Lagos in mid-July found that 50kg bags of rice (both international and Nigerian) were selling for between ₦75,000 and ₦100,000, crates of tomatoes were selling for between ₦60,000 and ₦90,000, and common spices like pepper and bell pepper were still quite expensive. These prices are higher than in prior years, so there is not much relief, even though the government says there will be.
Wage Negotiations and Central Bank Policies: Who Bears the Cost?
With rising inflation, stagnant wages are putting more pressure on Nigerian households. Labour groups, especially the Nigeria Labour Congress (NLC), are making more and more requests for pay raises to keep up with the rising cost of living. Comrade Joe Ajaero, the president of the NLC, has made it quite clear that workers can’t live on wages that don’t go up as long as the price of food and petrol keeps going up. He said that if wages don’t change, people may be even more unhappy, and poverty may worsen.
The CBN has been stabilising the naira through monetary policy and lowering inflation. Raising interest rates and trading forex are examples. The goals are to lower inflation expectations and stabilise the money supply. Since food prices have not dropped quickly, inflation data suggest that supply-side considerations should limit monetary policy.
Experts say that food inflation is mainly caused by structural problems like high production costs, reliance on imports, poor infrastructure, and ongoing fuel price shocks that can’t be fixed by raising interest rates alone. Professor Chinedu Eze, an economic analyst, says that food prices will stay high even with the CBN’s efforts if there aren’t long-term investments in agriculture and social protection.
Meanwhile, the government must balance poverty, stagnating wages, wage increases, and inflation. This complicates wage and social policy considerations.
Nigerians reject the government’s economic data because it doesn’t match reality. Price projections struggle against rising market prices and daily issues, while inflation slows. Enugu’s food costs rose almost 12% in one month, while Borno and Bayelsa had the most significant increases. This indicates that policies affect different locations differently.
Smallholder farmers improve the domestic food supply, but they find it difficult to support through government loan schemes. Due to bureaucratic holdups and stringent loan requirements, many cannot take advantage of National Credit Guarantee Company programs. A farmer in Enugu said, “Loans are promised, but the process is too complicated and slow. Increased output requires faster, easier funding.
Volatility in fuel prices makes the future more difficult. Nigeria imports refined petroleum, therefore changes in world pricing have an immediate impact on local prices. For fiscal sustainability, subsidies have been cut, yet the price of food, travel and pumps has gone up. The global oil market and domestic tax legislation are to blame for petrol prices that surpass ₦3,200 per litre.
Public Pressure and Calls for Inclusive Policy
These economic pressures have catastrophic impacts on society. Food insecurity is on the rise, making it harder for people to get adequate food, especially for kids and those in marginalised groups. numerous people are upset about how much more expensive basic requirements are getting, and this has led to protests in numerous places. Women’s groups, youth groups, and civil society activists are pressing the government to make big reforms to the economy and offer complete social safeguards at the same time.
Advocates call for a policy change that focuses on making things affordable and accessible rather than just pushing for market liberalisation. Social activist Ifeoma Nkem emphasised, “Food is a right, not a privilege. If we don’t directly support struggling households and invest in inclusive agriculture, relief from inflation will be out of reach for most Nigerians.”
Transparency and efficiency in how policies are implemented have recently faced some tough questions. Experts and NGOs are stressing how crucial it is to watch government programs closely to ensure the funds reach the people who need them. Dr. Amina Yusuf, a fiscal expert, pointed out, “Having solid policies on paper is great, but we need robust systems to track their delivery; otherwise, those promises won’t help anyone.”
In 2025, Nigeria’s food and gasoline costs rose, posing domestic policy, global market, and socio-political issues. President Tinubu wants to make it easier for people to get money, make things, and keep inflation under control. Discussions on wages deal with limits on income, while Central Bank policies keep the economy steady on a large scale.
But the high costs and widespread dissatisfaction show that the current policies haven’t done enough to help the poor. Policymakers need to tackle structural flaws and make sure that everyone follows the rules equitably so that life is easy for Nigerians.
As the rising costs of food and fuel continue to dominate the news and impact our daily lives, people and experts will be watching closely to see how much government action can actually do to solve the problem.