- Nigeria’s inflation rate declined to 23.18 per cent in February 2025
- An economist expert forecasts further deceleration for the rest of the year
- Nigerians remain sceptical about the rate
The National Bureau of Statistics (NBS) recently released the Consumer Price Index (CPI) report, which stated that Nigeria’s headline inflation rate eased to 23.18 per cent in February 2025.
The decline marked a second consecutive monthly decline from the 24.48 per cent recorded in January following the rebasing of the CPI by the NBS.
The February inflation figure indicates a 1.30 per cent decrease from January and an 8.52 percentage points decline compared to the 31.70 per cent recorded in February 2024.
The decline in the inflation figure caused dissenting opinions and reactions from economists and analysts, as well as Nigerians.
On the one hand, economists project a gradual drop in the inflation rate, which rose to 34.80 per cent in December 2024, before the end of the year.
This is even as the Federal Government targeted a 15 per cent inflation rate in the 2025 budget.
However, on the other hand, Nigerians are sceptical about the rate, saying it does not reflect current economic realities.
Economic expert foresees a deceleration of inflation
In his opinion on the February 2025 inflation rate, Dr Muda Yusuf, the Chief Executive Officer (CEO) of the Centre for Protection of Private Enterprises (CPPE), projected a further decline in Nigeria’s inflation rate in 2025.
He hinged his projection on the effects of government policies and improving macroeconomic conditions.
Yusuf attributed the current moderation in inflation to the effect of the CPI rebasing by the NBS and the improvement in microeconomic stability.
He, however, noted that despite the reduction, an inflation rate of 23.18 per cent remains elevated and indicates that price levels are still increasing, though at a slower pace.
“The further deceleration in inflation rate in February can be ascribed to two factors. The first is the base effect. When we compare the 2025 figures to 2024, you’re likely to see a significant deceleration [in the inflation rate gap].
“Inflation is essentially measured on a year-on-year basis, and because prices in 2024 were highly elevated.
“So, the base effect is one major effect that has been responsible for this. And this trend is likely to continue for the larger part of 2025,” he noted.
Nigerians are sceptical about the decline in inflation
Taking to social media, especially X, some Nigerians expressed scepticism towards the reported decline in the inflation rate in February 2025.
They noted that 23.18 per cent inflation figure by the NBS was just mere statistics as it does not reflect the current economic situation, especially as costs of goods and services are still high.
@IIOkwor queried, “What exactly are you guys talking about? How much is a bag of rice? How did y’all come up with these statistics? The current price of cement is how much? How did the inflation be reduced by 23.18% while the cost of transportation is still high? What methodology did you use?”
@sdansabo said, “@NBS_Nigeria, great news, right? But let’s be honest, without public trust, these stats are like seasoning a tasteless meal. Transparent data builds trust, and without it, even good numbers might feel like a practical joke. NBS, time to win Nigerians back.”
@mauriceekpeyong wrote, “How does this drop in the official inflation rate validate the rising cost of living in Nigeria? The household income is under pressure from increase in food prices, power, telecoms, rents, transportation etc.”
@Godswillluv tweeted, “NBS is giving us statistic and data that’s very different from reality on ground with the inflation of goods and services in the country. Where’s this false data that doesn’t reflect on the actual reality on ground coming from @NBS_Nigeria?”
Ogun, Imo, Sokoto, 7 other states with highest inflation in February 2025
Meanwhile, TheRadar earlier reported that Nigeria’s inflation rate dropped for the second consecutive month to 23.18 per cent in February 2025.
Despite the decline, households and businesses across Nigeria still grapple with persistent inflationary pressures. TheRadar highlighted the 10 states with highest inflation in February 2025
