Bismarck Rewane, the Managing Director of Financial Derivatives Company, has expressed considerable skepticism regarding the accuracy of Nigeria's latest Consumer Price Index (CPI) data, which was published by the National Bureau of Statistics (NBS). According to the NBS, the headline inflation rate experienced a slight decrease, dropping to 23.71 percent in April 2025 from 24.23 percent in March. However, Rewane has openly questioned the reliability of these figures, emphasizing notable inconsistencies between the inflation rates in states that are major food producers versus those that are primarily consumers.

Rewane pointed out, "The NBS results indicate that certain food-producing states are grappling with exceptionally high inflation rates, while major consuming states are reporting significantly lower rates." He specifically noted that Benue state recorded the highest inflation rate at 51 percent, followed by Ekiti at 34 percent, and Kebbi at 33 percent—all of which are critical food-producing states. In contrast, he stated that "inflation was lowest in consuming states such as Ebonyi with 7.19 percent, Adamawa at 9.52 percent, and Ogun at 9.91 percent." Rewane questioned the underlying logic of this disparity, asking, "How is it that the states producing the food, where the food is stranded at higher prices, are experiencing high inflation rates, while the states consuming the foodstuff are seeing low rates? What's happening here? Are these numbers credible? If they are not, what is the explanation? Are we observing distortions in the methodology, or is there a 'JAMB-type situation' occurring?"

He further remarked, "It's almost inconceivable that prices are high where the food is produced and low where the food is consumed. The inflation rate difference between Benue state and Ogun state, for example, is nearly 43 percent. What has caused this?" Rewane also voiced his doubts about the recent decreases in food prices, highlighting the volatility in the prices of staple commodities such as rice. "Yes, we have seen some movement in some food prices, but are they sustainable? The price of rice, for example, has been highly variable," he noted. "Rice prices dropped partly due to imports and partly due to rumors about poisoned rice, which deterred people from buying it. However, we haven't yet seen a significant shift to rice substitutes, which requires further investigation." He also drew attention to the mixed trends within the food basket, "The price of tomatoes increased by 107 percent due to tomato Ebola, while dairy prices remained relatively stable."

Rewane also emphasized the complexity of the causes of inflation, stating, "When examining inflation, you must consider what factors are causing it to decline. Is it a weak exchange rate driving inflation, or is it inflation weakening the exchange rate?" Regarding government interventions, Rewane criticized attempts to stabilize food prices through direct production or sales. "The government should not be involved in producing or selling food; that's the wrong approach," he asserted. "Markets determine the efficient price of a commodity; there's an equilibrium price." He explained the role of market forces, noting that "the individual who imports rice sells it in the market. Consumers, based on their income and demand, purchase the rice. Government interventions will not bring down prices."

Rewane identified two primary drivers of inflation: "First, there's a production shortfall caused by insecurity, issues with herders, and the cost of logistics, including petrol and diesel. Second, there's a demand side where people have excess liquidity and are increasing their purchases." He also acknowledged the role of monetary policy, stating that "the central bank controls demand by tightening liquidity through interest rates, but monetary policy alone cannot boost output and production." Rewane stressed the necessity of structural improvements for sustainable inflation control: "Increased output and production can only be achieved through improved power supply, efficient logistics, reduced business costs, and higher farm yields, which ultimately determine the equilibrium price."