Nigeria’s Inflation Rate Takes a Notable Dip at 24.48% Against 34.80% in December

By Emmanuel Kwada

Nigeria’s inflation rate has taken a significant drop, falling to 24.48% in January 2025, according to the National Bureau of Statistics (NBS). This decline is a welcome development, especially when compared to the 34.80% recorded in December.

Credit: NBS on X

The Statistician-General of the Federation, Adeyemi Adeniran, announced this drop, attributing it to the rebasing of the Consumer Price Index (CPI), which now better reflects current consumer spending patterns. The CPI rebasing has led to a more accurate representation of the country’s inflation rate, with urban inflation standing at 26.09% and rural inflation at 22.15%. The food inflation rate has also decreased, standing at 26.08% year-on-year in January, down from 39.84% in the preceding month. The core index, which excludes volatile agricultural produce and energy, has dropped to 22.59% year-on-year.

The prices of essential goods like rice, flour, milk, beans, and spaghetti have plummeted by over 40%

This decline in inflation is not just a statistical phenomenon; it has real-world implications. In Kano, the prices of essential goods like rice, flour, milk, beans, and spaghetti have plummeted by over 40%. Junaidu Zakari, the Chairman of Singer Market, credits the Federal Government’s policy of importing stipulated commodities and making them available, resulting in the significant price reduction.

Similarly, in Adamawa State, the prices of farm produce have decreased drastically. Ground nut, which was previously sold for between N110,000 to N120,000, now goes for N95,000 to N100,000. Unprocessed rice has also dropped from N75,000 to N70,000, while beans and ginuecone have followed suit. Mrs. Hanatu Luka, food stuff vendor in Adamawa State, attribute the price reduction to the resumption of schools, which has led to an increase in sales, as well as the need to pay for rent, fertilizers, and chemicals for their farm lands.

A variety of farm produce display in the market.

The Minister of Finance, Olawale Edun, has expressed optimism that the inflation rate will continue to drop, predicting a 15% inflation rate by the end of 2025. This prediction is based on the Central Bank of Nigeria’s (CBN) indication of a 15% inflation rate, which is achievable with the government’s efforts to increase supply and reduce demand.

According to the NBS, the rebased CPI has provided a more accurate picture of the country’s inflation rate, reflecting the current inflationary pressure and consumption pattern of the people. As the economy continues to grow, it is essential to monitor inflation rates and make adjustments to ensure that the growth is sustainable and benefits all Nigerians.

Read Also: Many Nigerians go hungry as food inflation increases