Nigeria’s Inflation Hits 23.1%: Economic Implications and Future Outlook

Nigeria’s inflation rose to 23.1% in February 2025, driven by increased transport costs and consumer spending, as noted by the NBS. Food inflation reached 23.51%. Analysts predict challenges in achieving the targeted 15% inflation rate this year, despite recent economic stabilization measures by the CBN.

In February 2025, Nigeria’s headline inflation surged to 23.1%, as reported by the National Bureau of Statistics (NBS). This increase is attributed to escalated transport costs driven by higher gasoline prices and increased consumer spending. The latest inflation figures reflect a rise from January’s 24.48% following recent rebasing efforts, indicating a potential discussion for another interest rate hike in the upcoming Monetary Policy Committee meeting.

Food inflation also rose to 23.51% in February, highlighting the impact of rising costs associated with food, transportation, and energy. Samuel Onyekanmi, an analyst at Norrenberger, indicated, “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 recent adjustments to the inflation rate, Onyekanmi expressed doubt regarding achieving the targeted 15% inflation rate in 2025. Nevertheless, he remains optimistic that this year could serve as a trial for potential stability in the coming years. The Central Bank of Nigeria (CBN) has implemented measures to stabilize the foreign exchange market, fostering a recent strengthening of the naira; however, the economy continues to navigate price shocks stemming from President Tinubu’s tenure.

In conclusion, Nigeria’s inflation rate has reached 23.1% as of February 2025, primarily due to rising transport costs and heightened consumer spending. With food inflation at 23.51%, analysts suggest that the economy may face continued challenges. Despite hopes for a stabilized inflation rate in the future, doubts remain regarding the targeted 15% for this year, emphasizing ongoing adjustments within the economic landscape.

Original Source: thecondia.com