Nigeria’s inflation rate has been a subject of concern for economists and citizens alike. The latest figures released by the National Bureau of Statistics (NBS) show that the inflation rate dropped to 23.18% in February 2025. While this may seem like a welcome development, it is essential to delve deeper into the numbers and understand the implications of this rate.
The NBS report reveals that the headline inflation rates declined by 1.30 percentage points in February. However, food inflation remained high at 23.51%, albeit a sharp drop from the 37.92% reported in the same month of the previous year. This disparity between the headline inflation rate and food inflation rate suggests that the drop in inflation may not necessarily translate to a decrease in the cost of living for Nigerians.
The NBS report also provides insight into the inflation rates across different states in Nigeria. Three states – Edo, Enugu, and Sokoto – recorded inflation rates exceeding 30%. Edo recorded the highest inflation rate at 33.59%, followed by Enugu at 30.72% and Sokoto at 30.19%. This regional disparity in inflation rates highlights the need for targeted policies to address the specific challenges facing each state.
Economists have attributed the drop in inflation to the base effect and stabilization of the macroeconomic environment. However, they also caution that the inflation rate remains high and that sustained efforts are needed to address the underlying factors driving inflation. Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise (CPPE), noted that the inflation rate at 23.18% is still very high, indicating that there is still work to be done to ease the inflation pressure on citizens.
The high cost of essential commodities remains a major concern for Nigerians. Despite the drop in inflation, many Nigerians are still struggling to make ends meet. Experts have called for sustained efforts to address the underlying factors driving inflation, including food prices, transportation costs, and supply chain disruptions.
The drop in Nigeria’s inflation rate to 23.18% is a welcome development, but it is crucial to acknowledge that the high cost of goods remains a significant challenge. Policymakers must continue to work towards addressing the underlying factors driving inflation to ensure that the benefits of economic growth are felt by all Nigerians.