Nigeria’s inflation rate dropped to 24.48% in January 2025 following the rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS). The updated methodology improves accuracy by expanding product categories and refining data collection, ensuring inflation figures better reflect economic realities.
Nigeria’s inflation rate declined to 24.48% in January 2025, following a rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS). The rebasing, which updates the methodology used to measure inflation, incorporates a broader range of goods and services to reflect changing consumer patterns more accurately.
The NBS stated that the updated CPI methodology improves data collection and provides a clearer picture of Nigeria’s economic landscape. Previously, the inflation calculation was based on outdated consumption patterns, leading to potential discrepancies in reported figures. With the rebased CPI, inflation rates now better align with actual market conditions.
Despite the decline in inflation, economic analysts caution that rising food prices and currency depreciation remain challenges. The NBS report highlighted that food inflation, a major component of the index, continues to exert pressure on household incomes. However, the revised CPI helps policymakers develop more effective economic strategies to manage inflationary trends.
Reactions from financial experts and economists have been mixed. While some applaud the rebasing as a necessary step for accurate economic reporting, others argue that the decline in the reported inflation rate does not necessarily translate to improved purchasing power for Nigerians.
The government has reiterated its commitment to economic stability and inflation control, emphasizing that the CPI update is part of broader reforms to strengthen Nigeria’s financial system. Stakeholders are now keenly watching how the new methodology influences future economic policies.
