The National Bureau of Statistics (NBS) has published its Consumer Price Index report for April 2025, unveiling a modest decline in Nigeria inflation rate compared to previous months and the same period last year. Nevertheless, the implication of inflation on Nigeria’s economy remains concerning, as many households continue to face financial strain.
The headline inflation rate eased to 23.71 percent year-on-year, down from 24.23 percent in March 2025 and a significant drop from 33.69 percent in April 2024. On a month-on-month basis, the inflation rate fell sharply to 1.86 percent in April 2025, down from 3.90 percent in March, indicating a slowdown in price increases for consumer goods and services.
The NBS report stated, “The Consumer Price Index rose to 119.52 in April 2025, reflecting a 2.18-point increase from the preceding month. In April 2025, the Headline inflation rate eased to 23.71 percent relative to the March 2025 headline inflation rate of 24.23 percent. Looking at the movement, the April 2025 Headline inflation rate showed a decrease of 0.52 percent compared to the March 2025 Headline inflation rate.
“On a year-on-year basis, the Headline inflation rate was 9.99 percent lower than the rate recorded in April 2024 (33.69 percent). This shows that the Headline inflation rate (year-on-year basis) decreased in April 2025 compared to the same month in the preceding year (i.e., April 2024), though with a different base year.”
Despite this slight easing of Nigeria Inflation , 10 states and the Federal Capital Territory registered inflation rates exceeding 30 percent, indicating persistent price pressures affecting various regions of the country. This widespread inflation not only influences consumer prices but also hampers economic stability and growth, straining family budgets and increasing the cost of living, which has become a pressing concern for many Nigerians.
The report highlighted that Nigeria urban inflation, which captures price changes in cities and towns where most Nigerians reside, remained high at 24.29 percent in April 2025. This suggests that urban households are particularly impacted by rising living costs. The monthly urban inflation rate registered at 1.18 percent, a reduction from 3.96 percent in March. Rural inflation was slightly less acute at 22.83 percent year-on-year, down from 31.64 percent in April 2024.
Regional disparities were stark; states such as Enugu, Kebbi, Niger, Benue, Ekiti, Nassarawa, Zamfara, Delta, Gombe, and Sokoto, alongside Abuja, revealed inflation rates above 30 percent, illustrating the uneven distribution of inflationary impacts across the nation. Enugu, for instance, recorded the highest headline inflation at 36.0 percent year-on-year, coupled with a staggering month-on-month inflation increase of 12.3 percent.
Food inflation figures are telling; in Enugu, food prices surged by 24.4 percent, reflecting continued pressure on households facing broader cost-of-living challenges. Other states like Kebbi and Niger experienced similar trends, with inflation rates of 35.1 percent and 34.8 percent, respectively, indicating that food price increases are a significant driver of overall inflation.
In Benue State, food inflation alarmingly reached 51.8 percent year-on-year, alongside a dramatic monthly increase of 25.6 percent in food prices, attributable to ongoing insecurity in the region. Such inflation rates not only threaten food security but also escalate poverty levels as essential goods become increasingly unaffordable for many.
The Federal Capital Territory, Abuja, reported an all-items inflation rate of 32.9 percent year-on-year, with a noticeable monthly increase of 9.8 percent. This suggests that even in the capital, where economic activity is centralized, inflationary pressures are felt.
As prices continue to rise, households face a dual challenge: increased costs and stagnant or declining purchasing power. The national food inflation rate has slowed to 21.26 percent year-on-year in April 2025, a substantial decrease from 40.53 percent in the same period last year. This change is attributed to the shift in the base year for calculations and decreasing prices of staple foods. Yet, the persistence of high food inflation exacerbates the already fragile economic conditions for many families.
Amid these figures, the business community has expressed skepticism over the actual benefits of the supposed easing inflation, with leaders from the Association of Small Business Owners of Nigeria and the Organised Private Sector of Nigeria indicating that the slight decline in inflation has yet to translate into improved conditions for micro, small, and medium enterprises (MSMEs). Dr. Femi Egbesola remarked, “The marginal drop in Nigeria’s inflation rate to 23.71 percent.
This is a development on the surface, but for MSMEs, the impact is yet to be truly felt. Input costs remain high, consumer purchasing power is weak, and access to affordable financing is limited.” This sentiment reflects a broader concern that even with a deceleration in the inflation rate, businesses, particularly small enterprises, are still grappling with the cumulative effects of prolonged inflation, which hinders growth and economic resilience.
The Lagos Chamber of Commerce and Industry characterized April’s inflation rate as “unremarkable,” warning that while the inflation rate dropping by 0.52 percent from March signals no further exacerbation, it doesn’t indicate a significant improvement in economic conditions. Idahosa stated, “If anything, the current interpretation is that inflation has remained flat,” underscoring the stagnation in purchasing power for consumers and ongoing challenges for businesses.
The National Vice President of the Nigerian Association of Small-Scale Industrialists echoed similar concerns, emphasizing that “the decrease in change is too little for any meaningful or noticeable impact.” With rising costs of raw materials still a reality, manufacturers find it challenging to cope with the persistent inflationary environment, leading to restricted capacity for growth and investment.
The National Bureau of Statistics report reinforces the argument that while a moderation in inflation at the national level has been noted, the reality remains harsh for many Nigerians, especially those in regions overly affected by high inflation rates. The disproportionate impact on specific states demonstrates the need for targeted government intervention to alleviate the pressures that inflation imposes on households and businesses alike, particularly given the potential for higher inflation to trigger further economic disparities.
The World Bank’s projection of an average inflation rate of 22.1 percent in 2025 highlights the complexities of Nigeria’s economic landscape. While the Central Bank of Nigeria’s tight monetary stance is expected to gradually stabilize inflation expectations, the immediate effects on ordinary Nigerians remain to be seen. Addressing the root causes of inflation, such as agricultural productivity and energy prices, is crucial in curbing these persistent pressures and fostering a more resilient economy.
Despite some indicators of a slight easing in inflation, the implications for Nigeria’s economy—ranging from the strain on household budgets to the challenges faced by MSMEs—suggest that the easing of inflation is not yet a cause for celebration but rather a sign of cautious optimism that must be supported with effective policy measures to ensure broader economic stability and growth.