Nigeria’s Inflation Rate Decreases to 23.18% in February 2025

Nigeria’s inflation rate fell to 23.18% in February 2025, down from 24.48% in January 2025. This is 8.52% lower than the rate in February 2024. The decline is attributed to changes in several economic sectors and a revised Consumer Price Index reflecting updated data.

According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate decreased to 23.18% in February 2025 from 24.48% in January 2025. This decline is noted in the release of the Consumer Price Index (CPI) and Inflation Report, which reveals that the February rate is also 8.52% lower than the 31.70% rate recorded in the same month in 2024. The difference in reporting is attributed to a new base year established in 2024.

The report highlights that the month-on-month inflation rate for February 2025 was recorded at 2.04%. This increase in the headline index is linked to rising costs in several sectors, including food and non-alcoholic beverages, transport, and accommodation services. Other impacted categories encompass education, health, clothing, personal care, and miscellaneous services, among others.

Food inflation saw a decrease to 23.51% year-on-year, which is 14.41% lower than the previous year’s 37.92%. This reduction can be traced back to changes in the base year. Nevertheless, month-on-month food inflation was reported at 1.67%, driven primarily by lower average prices of staple food items such as Yam, Potatoes, and Flour.

Core inflation, excluding food and energy prices, stood at 23.01% in February 2025, representing a decrease from 25.13% in February 2024. Month-on-month core inflation was recorded at 2.52%. The report provides additional breakdowns for farm produce, energy, and various goods and services categories.

Data indicated that urban inflation reached 25.15% year-on-year—8.51% points lower than the previous year. In contrast, rural inflation measured at 19.89% was significantly reduced compared to the 29.99% from February 2024. Month-on-month rates saw urban inflation at 2.40% and rural inflation at 1.16%.

Regionally, the highest year-on-year inflation was recorded in Edo at 33.59%, with Sokoto and Enugu following closely. On month-on-month inflation rates, Sokoto led with 11.98%. Conversely, the states indicating the slowest inflation growth included Katsina, Akwa Ibom, and Plateau.

The NBS has updated the CPI framework to better reflect Nigeria’s current economic structure by rebasing from 2009 to 2024, a move endorsed by the Statistician-General, Adeyemi Adeniran. This update aims to incorporate new data and improve the accuracy of economic indicators.

In summary, Nigeria’s inflation rate experienced a notable decrease in February 2025. The overall headline inflation rate rose primarily due to contributing factors in various sectors, although food prices exhibited a decrease year-on-year. The NBS’s efforts to rebalance the CPI reflect a strategic approach to more accurately present the economic situation. Such adjustments are essential for better understanding and managing Nigeria’s economic indicators moving forward.

Original Source: businessday.ng