Francis Onoiribholo

Dr. Thompson Akhigbe, the Chief Finance Officer of Jambless Consulting Nigeria Limited, has declared that Nigeria’s annual inflation rate eased slightly to 15.10% in January 2026 from 15.15% in the prior month, marking the tenth consecutive monthly decline.

Akhigbe stated this in an interview with journalists in Auchi, Etsako West Local Government Area of Edo State on Thursday.

Akhigbe, who is a lecturer in the Faculty of Management and Social Sciences, Edo State University, Iyamoh said the new tax law reform would majorly affect big companies, adding that the reform would cause inflation to other sectors of the economy.

“Since late 2025 till date there are stable economic financial activities in Nigeria and the prices of goods and services are now relatively stable.

“But business men and women in the country still need to be on the watch out in the face of the Federal Government proposed tax reform that was signed into law June 26, 2025.

“Though, the tax reform will majorly affect big companies, it is going to cause inflation to other sectors because these companies produce industrial products for other smaller companies that produce consumer products.

“This will certainly cause a shoot up in the cost of products and services in the country”

Akhigbe predicted that after election in 2027, when the determination of the tax reform will be ascertained, businesses will now readjust to cope with uncertainty.

“When there is inflation, there should be review of price strategies, cutting down of cost, diversify revenue streams, reduction in the investment in fixed cost and be flexible to follow the swing of the pendulum.

“This is necessary because the only thing that is constant in life is change. Hence, in business management, there is a concept called risk management.

“Inflation is part of risk because it happens, there is a holistic change in the operation of any business,” he said.

According to him, globally, inflation is one of the most debated macroeconomic challenges, and it has been identified as a monetary phenomenon in different societies at different times in history.

“It is commonly measured as the percentage change in the consumer price index or the wholesale price index over time. “Inflation erodes the purchasing power of money, by reducing the value of each currency unit.

“Demand-pull inflation occurs when aggregate demand in an economy is more than aggregate supply, meaning that inflation rises as real gross domestic product rises and unemployment falls,” he said.

Akhigbe also noted that Nigeria had experienced fluctuating inflation rates over the past few decades, influenced by various economic shocks, policy changes, and global trends.

“From the 1980s to early 2000s, inflation in Nigeria was highly volatile, often exceeding 30% due to fiscal mismanagement, currency depreciation, and external shocks.

“Following economic reforms and monetary policy tightening, inflation was reduced to single digits in the late 2000s, but persistent structural issues have led to recurring inflationary pressures in recent years.

In 2023, Nigeria recorded an inflation rate of 27.33%, primarily driven by fuel subsidy removal, exchange rate volatility, and supply chain disruptions.

“Basically, inflation is the general increase in prices and the fall in the purchasing value or power of money.

“Inflation as the sustained increase in the general price level of goods and services in an economy over a specific period”, he declared.