The latest data from the National Bureau of Statistics (NBS) shows that Nigeria’s inflation rate eased to 23.18% in February 2025, down from 24.48% in January.
While this decline shows a slowdown in price increases, it does not necessarily mean that the cost of living is improving for the average Nigerian.
A 1.30% drop in inflation may seem like prices are beginning to drop, compared to February 2024, when inflation stood at 31.70%, this is an 8.52% year-on-year decline. However, the truth is that essential goods and services are still expensive.
The NBS says the decline is partly due to adjustments in the base year used to calculate inflation, and this means while the numbers look better, the actual effect on purchasing power may be less.
Food inflation stood at 23.51% in February, a sharp drop from 37.92% recorded a year earlier. The NBS notes that the decline in food inflation is due to a statistical adjustment rather than a genuine reduction in food prices.
Month-on-month, food prices still increased by 1.67%, with staples like yam, potatoes, soya beans, and maize flour seeing slight reductions in price. However, for a country where food makes up a huge portion of household expenses, any increase, no matter how small, continues to bite.
Inflation in urban areas stood at 25.15%, while rural areas saw a lower rate of 19.89%. Though both figures show declines from a year ago, they still speak loads about a harsh economy. Rural communities, where incomes are generally lower, are seeing slower price increases, but access to affordable goods remains a struggle.
A slowdown in inflation doesn’t mean prices are coming down; it just means they are increasing at a slower pace. The relief many Nigerians need—actual price reductions—has not yet materialised. Economic policies, exchange rate stability, and production costs will keep impacting how inflation behaves both now and later on.
