However, the pressure on household pockets is still high. Released by the National Bureau of Statistics (NBS), the numbers are less of a celebration and more of a statistical change driven by technical factors and temporary price adjustments.

This decline from April’s 23.71% rate should mean things are improving, but that’s incorrect. Food inflation, arguably the most felt by everyday Nigerians, slowed year-on-year to 21.14% in May. 

Nonetheless, food prices actually rose on a monthly basis, climbing 2.19% from April’s 2.06%. Consumers aren’t imagining it, groceries still cost more today than they did last month.

The cause of the apparent dip is a mix of statistical changes and short-term economic interventions. In January, Nigeria rebased its Consumer Price Index (CPI), updating the basket of goods and base year for the first time since 2009. 

This change, while technically sound, has introduced what some experts call a “measurement paradox”: inflation looks lower, but the average Nigerian is still struggling to cope with high prices.

“This new CPI rebasing has a base-year effect that makes year-on-year comparisons appear softer,” one analyst explained. “But when you walk into a market, the prices don’t lie.”

Exchange rate stability has also played a role. The naira gained slightly against the dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), helping lower the cost of imports. 

At the same time, costs of logistics fell slightly following a fair reduction in petrol prices. Dangote Refinery, for instance, dropped its PMS price from ₦835 to ₦825 per litre. These changes brought mild relief, but not enough to fundamentally change the inflation space.

The NBS noted that inflation pressures cooled across categories like clothing, utilities, and healthcare. Still, economists warn that any easing will be short-lived without structural reforms. 

Insecurity in major food-producing regions and early seasonal flooding in the Middle Belt continue to disrupt supply chains. These challenges, if left unchecked, could reverse the current profits and push inflation back up.

On a month-to-month basis, overall inflation stood at 1.53% in May, down from 1.86% in April. That shows a slower pace in rising prices, but it’s not yet the kind of drop that resets economic confidence.

Put simply, Nigeria’s inflation rate is easing, but for millions living paycheck to paycheck, the lived reality hasn’t changed. Bread, rice, and transport are still eating into monthly income, and unless underlying problems are fixed, May’s “progress” may prove hollow.

In Lagos, motorists will now pay ₦875 per litre, down from ₦890. In other regions, the new prices range from ₦885 to ₦905 per litre.

The announcement was made on Thursday via the company’s official X (formerly Twitter) handle, confirming that the reduced prices apply across all stations operated by Dangote’s distribution partners. These include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy.

We looked at the new regional breakdown: South-West now sells at ₦885, North-West and Central zones at ₦895, while both the South-East and South-South regions, along with the North-East, are at ₦905. 

The company advised buyers to use only authorised stations, warning that any outlet not leveraging the new price should be reported directly via the provided helplines.

This reduction follows a trend by the 650,000-barrel-per-day refinery, which began refining petrol locally in January. Prior to this, the company had slashed ex-depot prices in April to ₦835 per litre, its second reduction in under a week. 

That came on the heels of an earlier price drop from ₦880 to ₦865. According to Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, the new prices will continue to apply across all partner retail stations.

“These price reductions reaffirm our commitment to providing high-quality petrol at affordable rates, benefiting consumers across the nation,” he stated.

Just days ago, Nigeria’s independent marketers resumed large-scale petrol importation. Data from Blue Sea Maritime shows that over 496 million litres of fuel were delivered to local depots between 11 and 20 May. At least 370,000 metric tonnes were discharged at seaports within that period.

However, Dangote’s strategy appears to go beyond price competition. The refinery explained that its naira-for-crude supply deal, through which it sources crude in local currency, has enabled it to reduce costs significantly. 

This structure, according to the company, makes its pricing model more resilient to fluctuations in global crude oil prices.

While consumers have complained that pump reductions announced by refineries are not always so on the ground, Dangote is putting pressure on its retail partners to comply. 

The company reaffirmed its goal to maintain affordable prices despite market volatility, stating: “Dangote Petroleum Refinery has consistently worked to reduce the prices of petrol and other refined petroleum products, ensuring the continued benefit of Nigerian consumers.”

In February alone, the company says it reduced prices by ₦125 in two separate moves. This, according to the management, is part of its goal to stabilise fuel costs and protect Nigerian consumers from the ripple effects of foreign exchange shocks.