Nigeria’s inflation dropped to 24.48% in January 2025, according to the National Bureau of Statistics (NBS).
Speaking to journalists on Tuesday, February 18, 2025, Statistician-General of the Federation Adeyemi Adeniran noted that urban inflation for January stood at 26.09% while rural inflation was at 22.15%.
In January 2025, the NBS announced that it intended to rebase both Gross Domestic Product (GDP) and Consumer Price Index (CPI), adding that this would align economic statistics with current realities in the country.
According to the NBS, sectors such as culture and tourism, information and communication technology, eCommerce, and the marine economy had witnessed significant growth that was not properly represented in previous reports.
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Since taking office in May 2023, President Bola Ahmed Tinubu has overseen sharp spikes in inflation driven by the removal of fuel subsidies and a naira devaluation.
Headline inflation stayed above 30% for much of 2024, with August 2024 being the first time inflation dropped in 19 months. However, that was only a short reprieve, with inflation figures rising again to 32.70% in September 2024 before ending the year at 34.80%.
The decline in January 2025 marks a significant shift, raising questions about whether inflationary pressures are beginning to ease.
Despite the drop, consumer prices remain high, and many Nigerians continue to feel the pressure of elevated food and energy costs. Food inflation, which has been a major driver of overall inflation, stood at 26.08% in January, down slightly from 34.80% in December 2024.
While the January inflation decline is the first in six months, Nigerians are unlikely to be encouraged by the news as energy and food costs remain high.
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Sustained relief will depend on increased agricultural productivity and policy adjustments. On its part, the Central Bank of Nigeria has maintained a hawkish stance, repeatedly increasing interest rates in 2024 as it looked to stabilise the naira and curb inflation. Thus, the coming months will be crucial in assessing whether Nigeria’s inflation is truly on a downward trajectory.
