In April 2025, Nigeria’s inflation rate stayed high at nearly 24% compared to last year. To understand what’s making prices rise, the Central Bank of Nigeria (CBN) asked businesses and everyday people what they think. Here’s what they found — and what it means for you.

What People Expect About Inflation

• Almost half (49%) of people think prices will stay the same next month, while about 36% expect prices to go up. Only about 15% believe prices will drop.
  
• Businesses are a bit more cautious: over 55% expect prices to stay steady, 31% think prices will rise, and just 13% expect a fall.
  
• Looking a bit further ahead (3 to 6 months), opinions are split. Around one-third expect prices to rise, another third think they’ll stay the same, and the rest hope for a drop.
  
• Households (regular families) are a little more worried than businesses, with more people expecting prices to go up soon.
  

What’s Making Prices Climb? The Top 5 Factors

1. Energy Costs — The Biggest Pain Point (91% agree)
Imagine this: Petrol prices bouncing between ₦870 and ₦920 per litre, plus electricity bills that can cost you ₦209 per kWh if you run power for 20 hours a day. For businesses that need a lot of energy, this means higher costs to make and move goods — and those costs often get passed on to customers.

2. Exchange Rate Swings (88%)
Even though the naira stayed roughly between ₦1,589 and ₦1,605 to the dollar, small changes still matter a lot. If you import raw materials or services priced in dollars, any dip in the naira makes these more expensive. That pushes up your costs and eventually, prices.

3. Transportation Costs Are Up (87%)
With fuel subsidies removed, the cost of moving goods by road, rail, air, and sea has jumped sharply. Add tolls, port fees, storage charges, and insurance, and companies have to spend much more to get products from one place to another.

4. Borrowing Money Is Expensive (85%)
The Central Bank’s high interest rates (around 27.5%) make loans costly. This means companies have less money to invest in new projects or keep their daily operations smooth, forcing them to tighten their budgets.

5. Security Concerns (84%)
Recent attacks in some states disrupt production and transport routes, making things riskier and more expensive to insure. Companies have to spend more preparing for emergencies, which again adds to the cost of doing business.

What This Means for You

• Businesses tend to be a bit more optimistic or cautious about inflation than regular families, who feel the pinch more directly.
  
• The big cost drivers are energy, currency changes, and transportation, all things businesses should watch closely.
  
• Security is also a big factor, reminding us that stability helps keep prices in check.
  

What Can Business Leaders Do?

• Plan for Energy Costs: Look for ways to save energy or switch to cheaper alternatives to protect your profit margins.
  
• Manage Currency Risks: Use smart currency tools or partners to reduce losses when the naira fluctuates.
  
• Optimize Logistics: Review routes and supply chains to find cost-saving opportunities in transportation.
  
• Review Financing Options: Find the best loan terms and consider alternative financing to ease cash flow pressures.
  
• Stay Alert to Security Risks: Factor potential disruptions into your business continuity plans.

At Bluebulb, we help businesses navigate these challenges with tailored FX solutions, cost-saving insights, and expert guidance. Want to keep your business strong amid rising prices? Let’s talk.