The annual inflation rate in Nigeria decreased to 23.18% in February 2025, down from 24.48% in January. Food prices remain high, contributing to ongoing food insecurity. The government has initiated emergency measures to stabilize food costs, yet inflation persists, particularly in essential goods. Year-on-year, food inflation decreased to 23.51% in February 2025 compared to the previous year, although monthly inflation still reflects ongoing economic challenges.
According to the National Bureau of Statistics (NBS), Nigeria’s annual inflation rate has decreased to 23.18% in February 2025, down from 24.48% in January 2025. This marks a reduction of 1.30%. Year-on-year, the inflation rate shows a significant decrease of 8.52% from February 2024, which recorded 31.70%. The NBS attributes this shift to various economic factors, including changes in the base year for inflation calculations.
Additionally, the month-on-month inflation rate for February 2025 was recorded at 2.04%. The challenging economic landscape in Nigeria has been characterized by rapidly rising food prices, a situation exacerbated by President Bola Tinubu’s removal of petrol subsidies and a transition to a floating exchange rate in 2023. These changes have significantly increased the cost of staple food items, intensifying food insecurity among Nigerian communities.
The rising prices have placed pressure on agricultural producers, many of whom have reduced outputs due to adverse weather conditions and insecurity affecting rural areas. In July 2023, President Tinubu declared a state of emergency aiming to tackle the food crisis, yet food inflation persists. To mitigate these challenges, his administration announced a suspension of duties and tariffs on vital food imports.
In January 2025, the NBS had previously reported a drop in inflation from 34.80% in December 2024 to 24.48% after rebasing the calculations. The latest NBS report outlines the contributions of various categories to the inflation index, with food and non-alcoholic beverages leading at 9.28%.
In terms of food inflation, February 2025 recorded a year-on-year rate of 23.51%, which is markedly lower than the previous year’s 37.92%. Month-on-month, food inflation stood at 1.67%. A comparison of average prices reveals a decline, particularly for items such as yam tubers and cassava.
Moreover, the average annual food inflation rate for the twelve months ending February 2025 increased to 34.74%, indicating a continued rise in food prices compared to the previous year’s metrics. These statistics underscore the ongoing economic struggles faced by the Nigerian population and the pressing need for effective policy responses.
In summary, Nigeria’s inflation rate presents a mixed picture with a notable decrease in the annual rate as of February 2025. However, persistent issues related to food prices, exacerbated by significant policy changes and economic instability, suggest that many Nigerians continue to face economic hardships. With emergency measures and adjustments to import tariffs, the government is attempting to curb rising food costs, albeit with limited immediate success. Continued monitoring is essential to understand the evolving inflation landscape and its impact on the populace.
Original Source: www.premiumtimesng.com
