Nigeria’s inflation rate dropped to 23.18% in February, down from 24.48% in January, according to the National Bureau of Statistics (NBS). The agency announced the figures on Monday, stating that the Consumer Price Index (CPI), which tracks changes in the cost of goods and services, reflected a 1.30% decrease in headline inflation compared to the previous month.
“The February 2025 headline inflation rate showed a decrease of 1.30% compared to January,” the agency posted on X.
Despite the overall decline, food inflation—an essential indicator for a country grappling with food security concerns—remained high at 23.51%.
Economic Struggles Persist
As Africa’s largest oil producer and the 16th largest globally, Nigeria continues to navigate a challenging economic landscape. Analysts largely attribute the country’s financial difficulties to the lingering effects of the fuel subsidy removal announced by President Bola Tinubu in May 2023.
The Nigerian government had long subsidized fuel prices to keep them low, but authorities argued that the policy had become unsustainable, draining billions from public funds and fostering corruption. Its removal led to an immediate surge in fuel prices, triggering inflationary pressures across the economy.
While inflation has eased slightly, many Nigerians continue to struggle with high living costs, particularly as food prices remain elevated despite reports of lower demand in some markets.