Naira Devaluation, Not Fuel Prices, Driving Nigeria’s Inflation – APC’s Oyalowo

Former member of the All Progressives Congress Presidential Campaign Council (APC PCC), Ayobami Oyalowo, has identified the continuous devaluation of the naira, rather than fuel prices, as the primary factor behind Nigeria’s escalating inflation.

Oyalowo made this observation while speaking on Channels Television’s The Morning Brief programme on Tuesday.

Oyalowo argued that the rising cost of fuel is not the central issue driving inflation, but rather the persistent decline in the value of the naira against the US dollar.

“I don’t believe the price of fuel is our major problem; what’s exacerbating the situation is the rate at which our naira is being priced against the dollar,” Oyalowo remarked during the interview.

He elaborated, explaining that despite the perception of high fuel costs, Nigeria is still purchasing fuel at less than 60 cents per litre when converted to dollars.

“What we are seeing is not so much about fuel price increases, but the severe undervaluation of the naira.

For as long as there is no focus on stabilising the naira, fuel prices will continue to rise, which in turn impacts the prices of goods and services,” he added.

Oyalowo also predicted that inflation would worsen in the coming weeks, especially once the September inflation figures are released.

He attributed this to the current high petroleum prices, which would inevitably reflect in the new data.

“The inflation figure for September will incorporate the current price of petroleum.

When that happens, we will likely see other costs increase, even in sectors like food, where we’ve seen marginal improvements recently,” he noted.

Oyalowo cautioned that while there has been some relief in food prices, the overall economic outlook might turn more negative in the near future.

The economist emphasised that addressing the devaluation of the naira should be a priority for policymakers if inflation is to be controlled.

Without a concerted effort to stabilise the national currency, he warned, Nigerians could face even higher costs of living.

His comments add to the ongoing debate on how best to manage Nigeria’s economic challenges, with many calling for measures to address both currency stability and structural reforms in key sectors such as petroleum and agriculture.