December 03, (THEWILL) — Input cost inflation in Nigeria eased to its lowest level in five years in the latest assessment of business conditions, according to a new report released this week. The slowdown signals a moderation in the cost pressures companies face, offering a potential relief to producers who have battled persistent inflationary strain in recent years.
The report, based on surveys of private-sector firms across manufacturing, services, agriculture and construction, shows that while costs continued to rise, the pace of increase was significantly softer compared to previous months. Respondents attributed the slowdown to a more stable exchange rate, improved supply conditions, and a moderation in the prices of key raw materials.
Despite the easing, many firms noted that high energy costs and elevated transportation expenses remain major challenges, limiting the extent to which businesses can fully pass on savings to consumers.
Some companies also highlighted that currency volatility and import bottlenecks continue to exert pressure on their operations.
Economists say the trend could be an early indication of improving macroeconomic stability, especially as policymakers intensify efforts to curb inflation and bolster local production. However, they caution that sustained moderation would depend on consistent policy implementation, improved infrastructure, and a stable business environment.
Businesses remain cautiously optimistic, with several firms expecting cost conditions to improve further in the coming months if supply chains continue to stabilise.
Ogochukwu Onwaeze
