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. Despite a year-on-year decrease of 8.52% from February 2024, food prices remain high, exacerbated by government policy changes. A state of emergency on food insecurity was declared, yet food inflation persists with ongoing economic challenges.

In February 2025, Nigeria’s annual inflation rate decreased to 23.18 percent, down from 24.48 percent in January. This reduction indicates a decline of 1.30 percent from the previous month. When compared to February 2024, the headline inflation rate showed an improvement, being 8.52 percent lower than the 31.70 percent recorded during that time. The data reflects a monthly inflation rate of 2.04 percent for February 2025.

The increase in food prices has significantly affected Nigeria, worsened by the removal of petrol subsidies and the floating exchange rate for the naira, as enacted by President Bola Tinubu. This transformation has led to a surge in the cost of staple foods, exacerbating poverty among many Nigerians and alarming food security levels. The ongoing price increases have compelled several farms and businesses to close down, with agricultural producers decreasing their output due to insecurity and unpredictable weather conditions.

In July 2023, Mr. Tinubu declared a food insecurity emergency to address the escalating food prices and implemented measures such as suspending duties, tariffs, and taxes on essential food imports, including beans and wheat. However, despite these interventions, food inflation continues to rise unfettered. The NBS reported a decline in the annual inflation rate from 34.80 percent in December 2024 to 24.48 percent in January 2025, showcasing a significant reduction post-rebasing.

The NBS further noted the contributions of various items to the headline index, with food and non-alcoholic beverages accounting for 9.28 percent, followed by services in restaurants and accommodation at 2.99 percent, and transport costs at 2.47 percent. Other contributors include housing, education, health, and personal care services, among others. The average Consumer Price Index (CPI) for the twelve months ending in February 2025 reflects a 30.09 percent increase compared to the previous year.

The food inflation rate in February 2025 was documented at 23.51 percent year-on-year, which was 14.41 percent lower than the 37.92 percent rate noted in February 2024. Although the significant drop in food inflation can be attributed to a change in the base year, a month-on-month evaluation reflects a food inflation rate of 1.67 percent. This indicates a decrease in average prices for items such as yam tubers, potatoes, and cornmeal, contributing to an average annual food inflation rate of 34.74 percent, marking a 4.67 point increase since February 2024.

In summary, Nigeria’s inflation displays a downward trend with a notable decrease in the overall annual rate to 23.18 percent in February 2025. Despite this improvement, persistent challenges lead to increased food prices, significantly impacting food security and poverty levels. The government’s response, which includes suspending tariffs on essential food imports, aims to mitigate these effects, but food inflation remains a critical concern.

Original Source: www.premiumtimesng.com