In February 2025, Nigeria’s inflation rate dropped to 23.18% from 24.48% in January. The food inflation rate also decreased to 23.51%, significantly lower than the previous year’s rate. Despite government interventions, food prices continue to rise, contributing to increased poverty and food insecurity among Nigerians.
In February 2025, Nigeria’s annual inflation rate decreased to 23.18% from 24.48% in January, as reported by the National Bureau of Statistics (NBS). This marks a reduction of 1.30% from the previous month. Notably, the inflation rate is also 8.52% lower than the figure recorded in February 2024, which was 31.70%. This indicates a significant year-on-year decline in the headline inflation rate despite variations in base year calculations, with November 2009 set at 100.
On a month-on-month basis, the inflation rate for February 2025 stood at 2.04%. Recent trends have shown a sharp rise in food prices, exacerbated by the removal of petrol subsidies and a floating naira exchange rate introduced by President Bola Tinubu in 2023. Consequently, many Nigerians face increased poverty and food insecurity as staple food costs surge.
Severe price increases have prompted numerous farms and businesses to close, with agricultural producers reducing output due to ongoing insecurity and unpredictable weather. In response to food insecurity, President Tinubu declared a state of emergency in July 2023, instituting measures to combat rising food costs. Notable among these measures was the suspension of duties on essential food imports.
The NBS noted a decline in Nigeria’s annual inflation to 24.48% in January 2025, down from 34.80% in December 2024, following an adjustment in statistical methods. The NBS detailed contributions to the headline index from various sectors, including food and non-alcoholic beverages (9.28%) and transport (2.47%), among others. The average change in the Consumer Price Index for the twelve months ending February 2025 was 30.09%, reflecting a 3.91% increase from 26.18% in February 2024.
The food inflation rate for February 2025 stood at 23.51% year-on-year, significantly lower than the 37.92% recorded in February 2024. While month-on-month food inflation was 1.67%, a decline in the average prices of several food items was noted. The annual average food inflation rate for the twelve months ending February 2025 was 34.74%, which constitutes a 4.67 percentage point increase from the same period in 2024, indicating persistent pressures on food prices in Nigeria.
In conclusion, Nigeria’s inflation landscape presents a mixed picture with recent decreases in the annual inflation rate, primarily influenced by economic measures taken by the government in response to food insecurity. However, challenges remain, particularly in food prices and agricultural productivity, due to ongoing security issues and weather variability. Continuous monitoring and proactive strategies will be necessary to stabilize prices and enhance food security in the nation.
Original Source: www.premiumtimesng.com
