Nigeria’s inflation crisis has deepened further, with the National Bureau of Statistics (NBS) reporting a sharp rise in headline inflation to 24.23% in March 2025, from 23.18% in February. This represents a 1.05 percentage point increase month-on-month, and the steepest year-on-year inflation Nigeria has recorded in over a year.
According to the latest Consumer Price Index (CPI) report released by the NBS on Monday, the increase reflects worsening economic conditions, surging commodity prices, and continued hardship for millions of Nigerians struggling with the cost of living.
The report highlights that inflation on a month-on-month basis surged by 3.90% in March, up significantly from 2.04% in February, indicating a faster increase in average price levels across goods and services.
“The Consumer Price Index rose to 117.34 in March 2025, reflecting a 4.40-point increase from the preceding month,” the NBS report noted.
The major contributors to the spike include food and non-alcoholic beverages (9.28 percentage points), restaurant and accommodation services (2.99%), transport (2.47%), and housing, water, electricity, gas, and other fuels (1.95%).
Food inflation continues to be the most pressing concern, rising to 21.79% in March, up from 20.01% in February. This persistent increase is being driven by rising prices of essentials such as fresh ginger, yellow garri, Ofada rice, pepper, potatoes, and plantain flour.
On a monthly basis, food prices surged by 2.18%, further straining household budgets, particularly for lower-income families who spend a large portion of their earnings on food.
Core inflation, which excludes volatile agricultural produce and energy costs, rose to 24.43% year-on-year. The month-on-month figure climbed to 3.73%, up from 2.52% in February, indicating rising costs in non-food goods and services such as healthcare, education, and transportation.
Inflationary pressure also showed marked urban-rural differences, with urban inflation at 26.12% compared to 20.89% in rural areas. The gap underscores the higher cost of housing, transport, and services in urban centers.
On a monthly basis, urban inflation stood at 3.96%, while rural inflation was 3.73%, maintaining the trend of urban areas bearing the brunt of inflationary pressures.
Among the 36 states and the FCT, Kaduna recorded the highest year-on-year inflation at 33.33%, followed by Osun (32.08%) and Kebbi (30.74%). These regions have seen sustained rises in food and fuel prices, contributing to inflation acceleration.
Conversely, Akwa Ibom (12.81%), Bayelsa (14.02%), and Sokoto (14.83%) recorded the lowest inflation rates, suggesting some regional stability in prices, possibly due to better local production or price controls.
In terms of food inflation, Oyo (34.41%), Kaduna (31.14%), and Kebbi (30.85%) led the charts. The lowest rates were seen in Bayelsa (9.61%), Adamawa (12.41%), and Akwa Ibom (12.60%).
The sustained rise in inflation raises red flags for Nigeria’s economic managers and the Central Bank of Nigeria (CBN), which is under pressure to implement tighter monetary policies. Analysts warn that unless structural issues such as insecurity in farming zones, forex instability, and high energy costs are addressed, inflation may continue its upward trajectory through the second quarter of 2025.
“With inflation rising at this pace, purchasing power is weakening and consumer confidence is plummeting,” said economic analyst Tunde Salami. “The government must move beyond short-term fixes and tackle the root causes of supply constraints, insecurity, and monetary instability.”
Nigerians, already burdened by stagnant wages and a depreciating naira, are left grappling with the consequences. Many are forced to cut down on essential items, adjust their spending habits, and seek additional income to survive the economic downturn.
As inflation rises unchecked, pressure mounts on policymakers to act swiftly and decisively. With a struggling economy, rising unemployment, and growing poverty, the latest figures are a stark reminder of the urgent need for economic reforms, fiscal discipline, and improved governance to restore price stability and public confidence.