Ayobami Oyalowo, a former member of the All Progressives Congress (APC) Presidential Campaign Council, has attributed Nigeria’s escalating inflation rate to the depreciation of the naira rather than fuel prices. Speaking on Channels Television’s The Morning Brief on Tuesday, Oyalowo argued that the core issue is the weakening value of the naira against the dollar, rather than the cost of fuel.
Oyalowo noted that while there has been a slight improvement in food prices, the depreciation of the naira is expected to drive inflation higher in the coming months. He highlighted that despite the current fuel prices being relatively stable, the real problem lies in the naira’s exchange rate.
“I don’t think the price of fuel is a major problem; the real issue is the rate at which our naira is priced against the dollar,” Oyalowo said. “We are still buying fuel at less than 60 cents, so the issue is not the increase in fuel prices but the undervaluation of our naira.”
He warned that without measures to strengthen the naira, fuel prices will continue to rise, leading to increased costs for goods and services. Oyalowo anticipated that the September inflation data would reflect the impact of current petroleum prices, potentially exacerbating the inflation situation.
“Next month, we may see things get worse because the inflation figure for September will include the current petroleum prices, and we might find that other costs have increased while the food prices we hoped would improve may not be as favorable,” he added.
