24th June 2025 9:33:52 AM
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’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.
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.
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