Nigeria’s inflation rate slowed to 23.18% in February 2025, down from 24.48% in January, according to the latest report from the National Bureau of Statistics (NBS). The decline follows the rebasing of the consumer price index (CPI) basket and ongoing government efforts to curb rising costs across key sectors of the economy.
The drop in inflation has been attributed to several factors, including monetary tightening by the Central Bank of Nigeria (CBN), improved agricultural output, and lower energy costs.
According to the NBS report, the food inflation rate, a major component of overall inflation, also eased slightly, with staple prices experiencing a marginal decline. “The reduction in food inflation is a result of increased local production, government subsidies on essential goods, and improved logistics within the agricultural supply chain,” the report stated.
The CBN has maintained a tight monetary policy stance in recent months, increasing interest rates and implementing liquidity control measures to stabilize the naira. Governor Olayemi Cardoso recently reaffirmed the apex bank’s commitment to reducing inflation further, noting that “the CBN will continue to deploy necessary tools to ensure price stability and economic growth.”
In addition, the federal government’s economic strategies, including subsidies on key agricultural inputs and targeted fiscal policies, have contributed to the gradual decline in inflation.
Despite the slowdown, analysts warn that inflation remains high and continues to impact household purchasing power. The cost of essential goods such as rice, cooking gas, and transportation remains elevated, with many Nigerians still struggling with the effects of previous inflationary spikes.
Economic analyst Dr. Tunde Balogun noted, “While the decline is a positive sign, 23.18% inflation is still a significant challenge. The government must continue policies that enhance food security, improve energy supply, and stabilize the exchange rate.”
Looking ahead, economists predict that inflation could continue to trend downward if current policies are sustained. However, external factors such as global commodity prices, exchange rate fluctuations, and geopolitical tensions could impact future inflation trends.
The CBN and the Ministry of Finance have expressed optimism that inflation will fall below 20% by the end of the year, provided economic reforms remain on track.
As Nigeria works to manage inflation, all eyes will be on upcoming economic data releases and policy adjustments. The government’s ability to maintain stability in the energy, food, and forex markets will play a crucial role in determining the success of inflation control efforts.
