Stable Naira and Lower Fuel Prices Ease Nigeria’s Inflation in 2025

In February 2025, Nigeria’s inflation rate decreased to 23.18%, down from January’s 24.48%. This decline is a result of stabilizing naira, lower fuel prices due to increased diesel output from the Dangote Refinery, and a CPI rebase. Food inflation also eased slightly, but analysts predict inflation may rise again by April amid global pressures. The Monetary Policy Committee held interest rates steady at 27.5%.

Nigeria’s inflation rate witnessed its first decline in 2025, dropping to 23.18% in February from 24.48% in January, as reported by the National Bureau of Statistics. This decrease can be attributed to a rebase of the Consumer Price Index (CPI), coupled with a stabilizing naira and reduced fuel prices. Increased diesel production from the Dangote Refinery led to a significant 33% decline in diesel prices, while petrol prices remained relatively stable.

Food inflation also showed slight improvement, decreasing to 23.51% from 24.08% in January. However, economists caution that inflation may experience another surge by April due to ongoing global economic challenges. In response to recent economic conditions, the country’s Monetary Policy Committee has chosen to maintain interest rates at 27.5% without any adjustments.

In summary, Nigeria’s inflation rate has decreased for the first time in 2025, attributed to stabilizing currency and lower fuel costs. Although food inflation has also lessened, analysts express concern over potential future increases due to global economic factors. The decision to keep interest rates steady reflects a cautious approach amid fluctuating macroeconomic conditions.

Original Source: iafrica.com