Managing Director of Financial Derivatives Company (FDC), Bismarck Rewane, has stated that Nigeria’s inflation figures are evident of deeper structural problems in the Nigerian economy which must be addressed.
The renowned financial expert stated this when he was featured as a guest on Channels Television’s Business Morning show on Monday.
Citing the latest inflation figures, which showed a rise in both core inflation and month-on-month inflation, he said the situation needs to be taken care of.
The latest Consumer Price Index and Inflation report by the National Bureau of Statistics (NBS) reveals that Nigeria’s inflation rate fell to 23.18 per cent in February 2025, down from 24.1 per cent in January 2025.
“If you look at the last inflation numbers, core inflation increased, and month-on-month inflation increased dramatically. This means that there are structural issues that need to be taken care of,” Rewane stated.
According to him, when structural inflation becomes entrenched in an economy, the transition from moderate to high inflation can happen swiftly.
“Structural inflation arises from deep-rooted inefficiencies such as supply chain disruptions, energy shortages, poor infrastructure, and fiscal imbalances—factors that Nigeria has struggled with for years.
“Once structural inflation is entrenched in a country, it doesn’t take long before you can switch from a moderate inflation level to a higher inflation level,” he added.
The financial expert pointed out that addressing these bottlenecks could reverse the trend.
He further emphasised that improving productivity—particularly in agriculture, manufacturing, and critical infrastructure—would help stabilise prices in the medium to long term.
“But once your productivity begins to increase significantly because of these bottlenecks…you’ll see the effects,” Rewane added.
