…as citizens grapple with stagnant incomes, low purchasing power
…call for solid dividends
Many Nigerians in both the private and public sectors believe that the country's economy is changing due to strong government policies, but the experience of many citizens bears testimony not to this.
Inflation is decreasing. Food prices are softening. Naira is recovering. Government officials and economic analysts are increasingly talking about stabilization, even recovery. But beyond the statistical releases and policy briefings, millions of Nigerians say their daily reality tells a different story, where survival still feels like a full-time struggle.
Encouraging numbers, persistent difficulty
According to the latest consumer price index released by the National Bureau of Statistics, inflation declined marginally to 15.10 per cent in January 2026 from 15.15 per cent in December 2025. Even more shocking is food inflation, which fell to 8.89 percent, the first single-digit reading in more than a decade.
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The Naira has also strengthened and is trading below N1,350 against the dollar in recent weeks, a marked improvement from its historic lows.
These indicators suggest that policy interventions, including exchange rate reforms, tight monetary policy and import rebates on key commodities, may yield results.
But for many Nigerians, stabilization has still not translated into meaningful relief.
“Transport alone is draining my salary,” said Kunle Ayoola, a young graduate. “Even if food prices fall, transportation and rent are still up. My salary has not increased.”
Like many salaried employees, Ayoola's earnings have remained largely stable while the cost of living has increased over the past two years.
Housing costs, in particular, have become a major pressure point. Landlords have increased rents significantly, citing inflation and currency devaluation, forcing many families to relocate to cheaper areas away from their workplaces.
“I had to go from Gbagada to Ayobo,” said Jamiu Lawal, a middle-aged salaryman. “My fare doubled. Now I spend more money and time on transportation.”
Economists often note that slowing inflation does not mean that prices are falling, only that they are rising more slowly. For already vulnerable families, this difference provides little comfort.
Even where prices of staple foods such as garri and rice have declined due to crop improvements and import subsidies, the cumulative effect of earlier price increases continues to shape household budgets.
This pattern reflects a key economic reality: improvements in macroeconomic indicators often precede improvements in household welfare by months or years.
income problem
Steady income is at the root of the disconnect.
For many Nigerians, salaries have not kept pace with inflation over the past two years, resulting in a sharp decline in purchasing power. Despite slowing inflation, households remain trapped in the new, higher cost structure.
“I'm earning the same salary I earned two years ago,” said Laval, who was quoted earlier. “But everything has doubled since then. So how is the economy any better for me?”
Small business owners face similar pressures. Rising input costs, low consumer demand and high operating expenses have eroded profit margins.
The naira's recovery has been widely welcomed, but its impact remains gradual. A stronger currency generally lowers import costs, which should ultimately lower the prices of goods. However, businesses often adjust prices carefully, waiting for continued stability before passing the savings on to consumers.
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Call for solid dividends
As the third anniversary of the Tinubu administration approaches, many Nigerians say they are less concerned about economic indicators and more interested in concrete reforms in their daily lives.
“We don't eat statistics,” said Ayoola, who was quoted earlier. “We want to feel the difference.”
This sentiment resonates across all income groups and occupations: economic recovery must translate into affordable housing, lower transportation costs, better wages, and better access to essential services.
For many families, survival strategies remain unchanged, cutting back on non-essential expenses, postponing large purchases and finding additional income sources.
Economic stabilization is often a gradual process. Reduction in inflation, currency recovery and improvement in fiscal indicators may indicate that the worst is over.
But for ordinary Nigerians, reform will only be meaningful when it reshapes daily life, when salaries move forward, when rents become manageable, and when basic necessities no longer feel like luxuries.
