The National Bureau of Statistics (NBS) has announced a sharp decline in Nigeria’s inflation rate, which fell from 34.8% in December 2024 to 24.48% in January 2025. This drop follows the rebasing of the Consumer Price Index (CPI), a move aimed at better capturing current economic realities.
In its January CPI report released on Tuesday, the NBS noted that despite this decrease, inflation still remains elevated, rising by 18.12 percentage points compared to the 29.9% recorded in January 2024.
The rebasing process, first announced in October 2024 by Adeyemi Adeniran, Statistician-General of the Federation, updates the CPI base year to 2019. This adjustment ensures inflation measurements align with evolving consumer spending patterns and structural economic changes.
According to the NBS, the rebased CPI now provides a more accurate reflection of inflationary pressures and household consumption trends across Nigeria.
Meanwhile, the Central Bank of Nigeria (CBN) has projected GDP growth of 4.17% for 2025, driven by economic reforms and efforts to stabilize inflation. The World Bank also estimates Nigeria’s GDP to grow by 3.5% in 2025 and 3.7% in 2026, supported by increased activity in the services sector and improving domestic demand.
Despite these positive indicators, experts caution that inflationary pressures and exchange rate volatility remain key challenges for the economy.
