In February 2025, Nigeria’s annual inflation rate decreased to 23.18%, down from 24.48% in January. This marks the second consecutive month of decline, following a significant drop from 34.80% in December 2024 after the National Bureau of Statistics (NBS) rebased its Consumer Price Index (CPI) to reflect current consumption patterns.

Regional Variations in Inflation Rates

Despite the overall decline, certain states experienced higher inflation rates. Edo recorded the highest at 33.59%, followed by Enugu at 30.72%, and Sokoto at 30.19%. These elevated rates indicate persistent price pressures in these regions, primarily due to high food prices, increased transportation costs, and supply chain disruptions. ​

Food Inflation Trends

Food inflation, a significant component of the headline rate, stood at 23.51% year-on-year in February, a sharp decrease from 37.92% in the same month of the previous year. The NBS attributed this decline partly to the change in the base year for inflation measurement. On a month-on-month basis, food inflation was recorded at 1.67%, indicating a slower rate of increase compared to previous months. Key food items such as yam tubers, potatoes, soybeans, maize flour, cassava, and dried Bambara beans saw price reductions, contributing to the easing of food inflationary pressures. ​

Expert Opinions on Inflation Trends

Economists and industry experts have expressed cautious optimism regarding the decline in inflation rates. Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, noted that while the 1.3% drop in headline inflation is positive, the rate remains high, indicating ongoing price increases but at a slower pace. He emphasized the need for continued efforts to ease inflationary pressures on citizens. Similarly, Professor Segun Ajibola of Babcock University highlighted that reductions in energy and food costs have been major drivers for the reduced inflation rate. He pointed out that decreases in fuel prices, influenced by factors such as the Dangote Refinery’s operations, have had a significant impact on the cost of consumables, thereby contributing to the decline in inflation. ​

Government Measures and Economic Outlook

In response to rising inflation, the Nigerian government has implemented several measures aimed at stabilizing the economy. In 2023, President Bola Tinubu’s administration removed fuel subsidies and devalued the naira to revitalize the economy and public finances. These reforms initially led to a surge in inflation; however, the Central Bank of Nigeria (CBN) anticipates that inflation will gradually decrease, targeting a single-digit rate in the medium term. The CBN also projects a GDP growth of 4.17% in 2025, supported by increased oil production and foreign exchange reserves.

Conclusion

While Nigeria’s overall inflation rate has shown a decline, regional disparities and high food prices continue to pose challenges. The government’s ongoing economic reforms and targeted measures are crucial in addressing these issues and achieving sustainable economic stability.