Nigeria’s Inflation Rate Drops to 24.48% in January 2025

Nigeria’s National Bureau of Statistics (NBS) has reported a significant drop in the country’s headline inflation rate, which stood at 24.48% in January 2025.

This is a notable decrease from the 34.80% recorded in December 2024. The new inflation figures were disclosed by the Statistician General, Mr. Prince Adeniran, at the launch of the rebased Consumer Price Index (CPI) report in Abuja.

According to Adeniran, the rebased CPI reflects the current inflationary pressures in the country, which are mostly driven by food, beverages, clothing, and footwear items.

The food inflation rate also experienced a significant decline, dropping to 26.08% year-on-year in January 2025, down from 39.84% in the previous month.

The decline in inflation rates may come as a surprise to many, especially considering Nigeria’s inflation rate had risen for four consecutive months, hitting a near 30-year high of 34.8% in December 2024.

However, analysts have explained that the drop in rebased inflation does not necessarily mean the general price level is declining.

Instead, the major factor responsible for the decline is the base year being closer to the current period.

“The NBS is comparing prices in 2025 with prices in 2024 instead of 2009. Also, the CPI baskets are not the same,” Adeniran noted.

This change in methodology has resulted in a 1000 basis point drop from 34.8 to 24.4 for headline inflation, and a 1400 basis point drop from 39.93 to 26.8% for food inflation.