Stable Naira and Lower Fuel Prices Ease Nigeria’s Inflation

In February 2025, Nigeria’s inflation rate decreased to 23.18% from 24.48% in January, influenced by a stable naira and lower fuel prices. Diesel costs fell by 33% due to increased production from the Dangote Refinery. Food inflation slightly decreased, but analysts warn of possible inflation surges by April. Interest rates remain steady at 27.5%.

Nigeria has experienced a decrease in inflation for the first time in 2025, with a reduction to 23.18% in February, down from 24.48% in January, as reported by the National Bureau of Statistics. This decline is attributed to a rebase of the Consumer Price Index (CPI), coupled with reduced fuel prices and a relatively stable naira.

Specifically, the increased output from the Dangote Refinery has led to a 33% reduction in diesel prices, while petrol prices have remained largely unchanged. Furthermore, food inflation also witnessed a slight decrease, falling to 23.51%, down from 24.08% in January.

Despite these temporary improvements, analysts caution that inflation rates may rise again by April due to ongoing global economic pressures. Additionally, the country’s Monetary Policy Committee has decided to maintain interest rates at 27.5% after evaluating the current macroeconomic situation.

In summary, Nigeria’s inflation has slowed down in February 2025, aided by a stable naira and lower fuel prices. Notably, the Dangote Refinery’s increased diesel output plays a critical role in this easement. However, concerns persist regarding a potential rebound in inflation rates later in the year, emphasizing the need for ongoing monitoring of global economic influences and domestic policies.

Original Source: www.africa.com