Food prices won’t return to what they used to be before subsidy removal: Presidency

President Bola Tinubu’s government said food prices may never return to what they used to be before subsidy removal, suggesting Nigerians should not expect food prices to return to what they were before.
Presidential spokesperson Sunday Dare disclosed this in a statement on Thursday, attributing the claimed drop in inflation to the rebasing of the economy by the National Bureau of Statistics.
“Yes. Prices are not back to the pre-subsidy removal regime. They probably may never be,” said Mr Dare. “But prices of foodstuffs and other services are dropping across board. Multiple independent market surveys have confirmed this development.”
He added, “For Nigeria, the 2025 rebasing is timely and effective, especially at the mid-point of this administration, and against the backdrop of new macroeconomic policies and their implementation.”
According to Mr Dare, the Nigerian economy is firming up, justified by the verifiable data and performances. Key reforms in the oil sector have seen local refining climbing up and market forces determining prices. Petrol imports are declining, and there is less pressure on forex.
“Under President Tinubu’s watch, we are seeing the headwinds abating and a new economic tailwind in favour of economic reforms,” Mr Dare claimed. “For the moment, it suffices to say that President Tinubu’s ambitious reforms are reshaping the Nigerian economy and unveiling new possibilities and opportunities.”
Mr Dare’s statement has triggered reactions from Nigerian social media users who disagreed with his claim, saying that rebasing the economy has not solved the inflation crisis.
An X user, @Goldmehda1, said, “Inflation is caused by the differences between the supply and demand chain. Once the demand outweighs the supply, then we should experience price increment. Thus, leads to inflation. The issue of rebasing hasn’t fit in this and the microeconomics is yet to tap from MacroEcons.”
Another X user, @ _iadeolu, said, “When you say prices are dropping, do you happen to know any landlord who is willing, or who will ever, reduce the cost of rent after increasing it in response to the inflation caused by the subsidy removal? Are we only to expect price reductions in the cost of garri and onions?”
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