Nigeria’s Inflation Eases for Second Consecutive Month, Raising Optimism for Further Relief

Nigeria’s inflation rate saw a decline for the second consecutive month in February, sparking optimism that price pressures may have peaked and could continue to ease in the coming months.

The National Bureau of Statistics (NBS) released its latest report on Monday, revealing that the country’s headline inflation rate fell to 23.18 percent in February 2025, down from 24.48 percent in January, marking a 1.30 percent decrease month-on-month. On a year-on-year comparison, the inflation rate decreased by 8.52 percentage points from 31.70 percent in February 2024.

While the NBS acknowledged that the inflation figures were calculated using a different base year, it emphasized that the decline signifies a notable slowdown in price increases compared to the same period last year.

In terms of month-on-month growth, February’s inflation rate stood at 2.04 percent, indicating the rate at which prices increased during the month. The NBS noted, “The February 2025 headline inflation rate eased to 23.18 percent, compared to the 24.48 percent recorded in January 2025. This reflects a 1.30 percent drop month-on-month. Year-on-year, the February 2025 headline inflation rate was 8.52 percent lower than the same period last year.”

Despite the overall drop in inflation, prices continue to rise, although at a slower pace, suggesting that the pressure on household budgets may gradually begin to ease.

The reduction in inflation comes as the Central Bank of Nigeria (CBN) has implemented a series of monetary tightening measures and foreign exchange stabilization policies aimed at controlling soaring prices. Rising costs of goods and services, driven by currency depreciation, high transportation costs, and disruptions to supply chains, had propelled inflation to historic highs in 2024.