Nigeria’s Inflation Rate Decline: Key Insights from February 2025

Nigeria’s inflation rate fell to 23.18% in February 2025, down from 24.48% in January. Food inflation decreased to 23.51%, the lowest since September 2022. This decline results from a rebasing of the Consumer Price Index by the National Bureau of Statistics, although the CPI rose by 2% month-on-month.

In February 2025, Nigeria’s annual inflation rate decreased to 23.18%, the lowest figure since June 2023, down from 24.48% in January. This notable decline reflects a significant economic adjustment. Additionally, food inflation has eased to 23.51%, the lowest it has been since September 2022.

The decrease in inflation rates is chiefly attributed to a technical adjustment in the base year conducted by the National Bureau of Statistics. In January 2025, the Bureau rebased the Consumer Price Index (CPI) from 2009 to 2024, which has played a crucial role in influencing the current statistics.

However, it is important to note that on a month-on-month basis, the Consumer Price Index increased by 2%, indicating ongoing inflationary pressures in certain sectors.

The recent decrease in Nigeria’s inflation rate reflects successful economic adjustments, as evidenced by the rebasing of the Consumer Price Index. While the overall inflation and food inflation rates have fallen, the month-on-month increase of 2% in the CPI highlights continued inflationary challenges. Efforts to monitor and manage these trends will be essential for maintaining economic stability.

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