Nigeria’s Inflation Rises to 23.1% in February 2025

Nigeria’s inflation surged to 23.1% in February 2025, driven by rising transport costs and consumer spending. Food inflation also rose to 23.51%. Analysts suggest the targeted 15% inflation rate for 2025 may not be achievable but foresee stability in following years as the economy adjusts to recent price shocks.

In February 2025, Nigeria’s headline inflation rose to 23.1%, driven primarily by increased transportation costs linked to higher gasoline prices and elevated consumer expenditure, as reported by the National Bureau of Statistics (NBS). This increase represents a slight decline from the 24.48% recorded in January following recent rebasing efforts, indicating that a further discussion on interest rate hikes is likely at the upcoming Monetary Policy Committee meeting later this year.

Food inflation in Nigeria reached 23.51% in February, with consumers facing increased expenses in food, transportation, and energy sectors. Samuel Onyekanmi, an analyst at Norrenberger, commented on the situation by stating, “I expect to see a slight increase in inflation, going by the frenzy buying typically associated with the festivities and noting that food inflation is still very much on the high, due to the seasonal effect.”

Despite the rebasing efforts, Onyekanmi expressed doubt about achieving the targeted 15% inflation rate in 2025, yet he acknowledged the potential for stability in subsequent years, suggesting that 2025 might serve as a preparatory phase. Moreover, the Central Bank of Nigeria (CBN) has taken steps to stabilize the foreign exchange market, which has contributed to a slight strengthening of the naira. Nevertheless, the economy still grapples with the price shocks that have emerged since President Tinubu assumed office, indicating that adjustments are ongoing.

In summary, Nigeria’s inflation rate reached 23.1% in February 2025, influenced by increased transportation costs and consumer spending. While consecutive months have shown fluctuations in inflation figures, analysts remain skeptical about reaching the targeted inflation rate within the year. The CBN’s measures to support the foreign exchange market have provided some relief, but the economy’s adjustments are still in progress.

Original Source: thecondia.com