The Managing Director of Financial Derivatives Company, Bismarck Rewane, has expressed concerns over Nigeria’s rising inflation, describing it as a sign of deeper structural issues in the economy.
Rewame made this disclosure on Monday during a live appearance on Channels Television’s Business Morning.
He noted the recent inflation data, which showed troubling increases in both core inflation and month-on-month inflation.
“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,” he said.
The National Bureau of Statistics latest Consumer Price Index and Inflation report shows Nigeria’s inflation rate decreased to 23.18% in February 2025, down from 24.1% in January 2025.
Rewane stressed that once structural inflation takes hold, the shift from moderate to high inflation can occur quickly.
He explained that structural inflation is driven by persistent inefficiencies like supply chain disruptions, energy shortages, inadequate infrastructure, and fiscal imbalances—issues that Nigeria has faced 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 stated.
He however proposed that resolving these bottlenecks could reverse the inflation trend.
He emphasized that enhancing productivity, especially in agriculture, manufacturing, and essential infrastructure, would be key to stabilizing prices over the medium to long term.
“But once your productivity begins to increase significantly because of these bottlenecks…you’ll see the effects,” Rewane noted.
President Bola Tinubu has emphasized his administration’s strong commitment to reducing inflation from 34.6% to 15% by the end of 2025.
In his 2025 budget presentation on December 18, 2024, he outlined strategies to achieve this goal, underscoring the government’s focus on stabilizing the economy and fostering sustainable growth.
These efforts are expected to involve fiscal and monetary reforms, as well as targeted initiatives to address the main causes of inflation.
