According to data from the National Bureau of Statistics (NBS), the inflation rate in Nigeria decreased to 24.48% in January 2025.
Federal Statistician Adeyemi Adeniran told journalists during his February 18, 2025 remarks that urban January inflation reached 26.09%, but rural areas reported 22.15%.
The NBS made public in January 2025 their decision to rebase the Gross Domestic Product (GDP) and Consumer Price Index (CPI) which would bring economic statistics to reflect present Nigerian realities.
Statisticians at the NBS determined that the growth patterns of culture and tourism and information and communication technology as well as eCommerce and marine economics did not receive sufficient representation in former statistics.
The National Bureau of Statistics (NBS) confirmed that Nigeria experienced a decline in its inflation rate to 24.48% in January 2025.
The Federal Statistician Adeyemi Adeniran addressed journalists during his February 18, 2025 presentation to disclose that urban January inflation totaled 26.09% yet rural January inflation reached 22.15%.
The NBS planned in January 2025 to rebase both Gross Domestic Product (GDP) and Consumer Price Index (CPI) to match contemporary economic conditions in the country.
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Previous reports did not accurately show the substantial growth of culture and tourism together with information and communication technology as well as eCommerce and marine economy according to the NBS.
During his first months as president starting in May 2023, President Bola Ahmed Tinubu caused inflation spikes through the elimination of fuel subsidies followed by a naira devaluation.
The headline metrics of inflation exceeded 30% across most of 2024 until August bringing the first decrease after nineteen months. The inflation rate reached 32.70% in September 2024 after inflation recorded a brief reduction from its previous year at 34.80%.
The January 2025 decrease brings important developments which raise uncertainties about whether the inflation pressures will start to reduce.
Widespread consumer price elevation continues to burden Nigerians even with the reported decrease because food and energy market costs stay high. The January food inflation level was 26.08% after posting a 34.80% rate during December 2024.
Despite showing the first reduction in six months Nigerians will not experience renewed optimism due to the sustained high prices of food and energy.
For relief to stay consistent the Nigerian government must improve agricultural output and change its policies. Throughout 2024 the Central Bank of Nigeria heightened interest rates through multiple adjustments to keep the naira stable and reduce inflationary pressure. Future months will show if Nigeria’s inflation rates will remain on a declining path.
