By OBSERVERS TIMES
Brace yourselves, Naija! Your pocket is feeling the squeeze, and a new Central Bank of Nigeria (CBN) survey has laid bare the culprits fueling the fire of rising prices. Exchange rate instability, the ever-surging cost of transportation, and sky-high energy bills are the top three devils driving inflation perception in April 2025, according to businesses and households nationwide.
The CBN’s latest Inflation Expectation Survey Report paints a stark picture. A whopping 91% of respondents point their fingers squarely at the volatile cost of energy – from the petrol in your generator to the electricity struggling to keep the lights on. With fuel prices dancing between N870 and N920 per liter, and power tariffs leaving Band A customers shelling out a staggering N209 per kilowatt-hour, it’s no wonder budgets are being stretched to breaking point.
Closely tailing energy costs is the ever-present headache of the exchange rate, impacting a staggering 87.8% of those surveyed. Despite a brief period of relative calm in both official and black markets (hovering around N1,600 to the dollar), the lingering fear of Naira depreciation and its knock-on effect on import prices keeps businesses and consumers on edge.
The daily grind of transportation – whether by road, air, water, or even the struggling rail lines – is the third major pain point, cited by 86.7% of respondents. The ghost of fuel subsidy removal continues to haunt commuters and businesses alike, with added burdens like toll fees and port charges further inflating the cost of movement.
But the pinch doesn’t stop there. Interest rates (influencing 85.3%) and the pervasive insecurity plaguing parts of the nation (flagged by 83.9%) round out the top five inflation drivers. The CBN’s decision to hold interest rates steady amidst fluctuating treasury bill yields has its own set of economic implications, while the tragic loss of life in Benue and Plateau states in April serves as a stark reminder of how instability can ripple through the economy.
What’s next? The survey reveals a nation on edge. While nearly half (48.9%) expect inflation to hold steady in May, a significant 35.9% brace for further increases. Businesses appear slightly more optimistic, but households are clearly feeling the heat. The longer-term outlook remains uncertain, with opinions split on whether prices will stabilize or continue their upward march.
