Nigeria’s Inflation Rate Drops To 23.18% In February- NBS

Nigeria’s inflation rate dropped to 23.18% year-on-year in February 2025, according to the National Bureau of Statistics (NBS). The figure aligns with analysts’ predictions.

The new inflation figure represents a 1.3% decline from 24.48% at the beginning of the year, based on the rebased Consumer Price Index (CPI). On a month-on-month basis, inflation fell to 2.04% in February from 10.68% in January. The decline was attributed to improved currency stability, a slight reduction in petrol prices, and the base effect of the new CPI calculation.

Despite the drop, inflationary pressures persisted due to rising costs in key sectors, including food and non-alcoholic beverages, housing, electricity, gas, transportation, education, healthcare, and communication.

The 12-month average CPI rose by 30.09% in February, up from 26.18% in February 2024. Food inflation also declined to 23.51% year-on-year, significantly lower than the 37.92% recorded a year earlier.

The drop in food inflation was largely due to the change in the CPI base year to 2024. However, on a month-on-month basis, food prices still increased by 1.67%, with notable price reductions in yam tubers, potatoes, soybeans, maize flour, cassava, and dried Bambara beans.

Core inflation, which excludes volatile agricultural produce and energy, stood at 23.01% year-on-year, down from 25.13% in February 2024. Month-on-month, core inflation was recorded at 2.52%.

Urban inflation was higher than rural inflation, standing at 25.15% year-on-year compared to 19.89% in rural areas. On a state level, Edo recorded the highest annual inflation rate at 33.59%, followed by Enugu (30.72%) and Sokoto (30.19%). The lowest inflation rates were observed in Katsina (15.45%), Akwa Ibom (15.53%), and Plateau (15.74%).

The Statistician-General of the Federation, Adeyemi Adeniran, explained that the CPI rebasing was necessary to reflect the current economic structure, incorporate new sectors, and improve data accuracy. The base year for CPI calculation was updated from 2009 to 2024 to achieve this goal.