Nigeria’s annual inflation rate fell to 23.18% in February 2025 from 24.48% in January, marking a 1.30% decrease. This represents a significant year-on-year reduction of 8.52% from 31.70% in February 2024. The report highlights ongoing challenges in food prices and food insecurity despite government interventions.
In February 2025, Nigeria’s annual inflation rate has decreased to 23.18 percent, down from 24.48 percent in January, as reported by the National Bureau of Statistics (NBS). This translates to a decline of 1.30 percent from the previous month’s rate. The inflation rate, when compared year-on-year, is significantly lower by 8.52 percent against the 31.70 percent recorded in February 2024, indicating a downward trend despite variances in the base year used for calculations.
The NBS’ report noted that the month-on-month inflation rate for February 2025 was recorded at 2.04 percent. This reduction comes amidst escalating food prices, attributed partly to the removal of petrol subsidies and the adoption of a floating exchange rate for the naira by President Bola Tinubu. Consequently, these changes have negatively impacted staple food prices, leading to increased poverty levels and food insecurity among Nigerians.
Mr. Tinubu’s government recognized the urgent need to address food insecurity and declared a state of emergency in July 2023. Following this declaration, various measures have been implemented to alleviate rising food costs, including the suspension of duties and tariffs on essential food imports such as beans, wheat, and rice. Despite these interventions, food inflation has persisted, indicating ongoing challenges in stabilizing prices.
In January 2025, Nigeria’s inflation rate had already decreased to 24.48 percent from 34.80 percent in December 2024, showcasing that the ongoing adjustments are starting to yield more favorable results. The NBS provided detailed insights into the contributions to the headline index, highlighting that food and non-alcoholic beverages made the most significant impact at 9.28 percent.
Food inflation itself stood at 23.51 percent in February 2025, marking a reduction of 14.41 percent from the 37.92 percent recorded in February 2024. However, the NBS suggested that this decrease is partially influenced by the change in the base year. On a month-to-month basis, February 2025 saw a food inflation rate of 1.67 percent with notable drops in the prices of several food items compared to January 2025.
Ultimately, the average annual rate of food inflation for the twelve months ending February 2025 was calculated at 34.74 percent, representing an increase of 4.67 percent from the previous year’s figures. The NBS continues to monitor these trends closely, as they have significant implications for the Nigerian economy and the populace’s wellbeing.
In conclusion, Nigeria’s inflation rate has shown signs of easing, with notable decreases reported for both overall inflation and food inflation in February 2025. Despite the decline, challenges remain, particularly regarding food security and the rising costs of essentials. The measures taken by the government to address these issues highlight ongoing efforts to stabilize the economy. Continuous monitoring and effective strategies will be essential to ensure further progress in controlling inflation and supporting the public’s access to food and resources.
Original Source: www.premiumtimesng.com
