National Wire About Nigerians, Nigerian Business and Other Stories
Despite a significant decline in Nigeria’s inflation rate to 24.48% year-on-year in January 2025, many Nigerians continue to grapple with the high cost of living, particularly soaring food prices.
This marks a notable drop from the 34.80% inflation recorded in December 2024, according to the latest report from the National Bureau of Statistics (NBS). Announcing the figures on Tuesday, the Statistician-General of the Federation, Adeyemi Adeniran, highlighted the sharp decline in the Consumer Price Index (CPI), which measures changes in the prices of goods and services.
Speaking at a press briefing in Abuja, Adeniran revealed that urban inflation stood at 26.09%, while rural inflation was recorded at 22.15%. He attributed the decline partly to the rebasing of the CPI, which involves updating the reference year and adjusting the basket of goods and services used to measure inflation. This ensures that inflation data better reflects current consumer spending patterns and aligns with international standards.
According to the revised CPI figures, food inflation dropped to 26.08% in January, a significant decrease from the 39.84% recorded in December. Similarly, the core inflation index, which excludes volatile agricultural and energy prices, stood at 22.59% year-on-year.
The NBS emphasized that the rebased CPI provides a more accurate picture of inflationary pressures and consumer behavior in Nigeria.
Meanwhile, the Central Bank of Nigeria (CBN) has reiterated its commitment to reducing inflation and stabilizing the economy. Speaking at the 2025 Monetary Policy Forum in Abuja, CBN Governor Yemi Cardoso stressed the need for strong fiscal and monetary coordination to manage inflation and restore purchasing power.
“Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence,” Cardoso stated.
As Nigerians await further relief, many hope that the combination of government policies and the resumption of farming activities with the outset of the rainy season will help ease economic hardships, especially before Easter.
Meanwhile, the exchange rate is also witnessing a decline as the Naira strengthens against the US Dollar in the parallel market. After reaching over ₦1,700 in November, the Dollar traded at ₦1,520 in Lagos today. Nigerians remain hopeful that if this downward trend continues, it could positively impact the economy. At the very least, a stable exchange rate could help curb inflation and bring relief in the prices of goods and services.
Report by Dayo Emmanuel
