Nigeria’s inflation rate declined for the first time in 2025. The National Bureau of Statistics (NBS) reported that headline inflation fell to 23.18% in February, down from 24.48% in January.
Lower fuel prices and a stable naira helped slow inflation. Increased output from Dangote Refinery reduced diesel and petrol costs. Diesel prices fell 33% to ₦1,000 per litre, while petrol remained stable at ₦800+ per litre. These changes eased transportation and production costs. Food inflation also dropped to 23.51% from 24.08% in January.
Analysts warn that inflation could rise again by April. Basil Abia, co-founder of Veriv Africa, predicts an average inflation rate of 31% for 2025. He blames global economic pressures rather than Nigeria’s policies.
The Monetary Policy Committee (MPC) kept interest rates at 27.50% in February. Policymakers see some progress with exchange rate stability and slower fuel price increases. However, inflation risks remain high for the rest of the year.
