Nigeria’s middle class can only recover if inflation falls to 12% and the economy grows by 8 to 10%, warns CEO of CFG Advisory, Adetilewa Adebajo.
Speaking to media on Tuesday, Adebajo highlighted how rising prices have eroded purchasing power and wiped out the middle class.
He described Nigeria as a “sachet economy,” where most people can afford only small, daily essentials.
“To bring people back to the middle class, inflation needs to be at 12%,” he said.
Signs Of Relief
Fortunately, inflation has slowed for the fifth consecutive month.
In August, it fell to 20.12% from 21.88% in July.
Moreover, food prices eased for the first time in three months as the harvest season gathered pace.
At the same time, the naira strengthened to a seven-month high, which boosted confidence in monetary policy.
Consequently, the Central Bank cut the key interest rate by 50 basis points to 27%, marking the first easing in five years.
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Governor Yemi Cardoso emphasised that the authorities must coordinate monetary and fiscal policies closely to achieve single-digit inflation.
Path To Growth
However, Adebajo insisted that the public needs clearer communication and concrete programmes.
“Fiscal and monetary policies are aligned, but we need trade, investment, industrial policy—and private-sector involvement,” he said.
Meanwhile, Nigeria’s economy grew 4.23% in the second quarter of 2025, its fastest pace in four years.
Analysts expect growth to accelerate further as oil production rises and business opportunities expand, offering hope that the middle class can gradually reclaim its footing.
