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Tag: Inflation

  • Inflation declines to 21.88% in July, 2025

    Inflation declines to 21.88% in July, 2025

    The National Bureau of Statistics (NBS) on Friday said headline inflation declined to 21.88% in July 2025 from the 22.22% recorded in June 2025.

    The crash, according to the Statistician General of the Federation Prince Adeyemi Adeniran, was because of lowered cost of foods, transportation and the others variables.

    He said, “The headline inflation rate for July 2025 decreased to 21.88% compared to the June 2025 rate of 22.22%.”

    The NBS boss also said, “Contributions to Headline Inflation: At the divisional level, the three major contributors to the headline inflation were Food and non-alcoholic Beverages: 8.75%, Restaurants & Accommodation Services: 2.83%, and Transport: 2.33%; while the least contributors were Recreation, Sport, and Culture: 0.07%, Alcoholic Beverages, Tobacco, and Narcotics: 0.08%, and Insurance and Financial Services: 0.10.”

    This was contained in a press statement he issued which said following the completion of the recent rebasing exercise, this report is centred on a new CPI base year of 2024 and a weight reference period of 2023.

    He added hence, the Consumer Price Index (CPI) rose to 125.9 in July 2025, and reflects a 2.5-point increase from the preceding month.

    According to him, on a month-on-month basis, the headline inflation rate in July 2025 was 1.99%, which was 0.31% higher than the rate recorded in June 2025 (1.68%).

    He said the food inflation rate in July 2025 was 22.74% on a year-on-year basis.

    Adeniran added that on a month-on-month basis, the food inflation rate in July 2025 was 3.12%, which fell by 0.14% compared to June 2025 (3.25%).

    He attributed the decline in food inflation to the rate of decrease in average prices of items such as Vegetable Oil, Bean (White), Rice Local, Maize Flour, Guinea Corn (Sorghum), Wheat Flour, Millet Whole grain, etc.

    He explained that core inflation which excludes the prices of volatile agricultural produce and energy, stood at 21.33% in July 2025 on a year-on-year basis.

    Read Also: Inflation rate drops for fourth consecutive time
    He also said on a month-on-month basis, the core inflation rate was 0.97% in July 2025, down by 1.49 percentage points from 2.46 recorded in June 2025.

    The statement reads in parts, “The newly introduced indices: The inflation rate of the sub-indices for July 2025 shows that Farm Produce (3.96%), Energy (2.71%) and Goods (2.72%) increased significantly, and their index were 128.5, 121.2 and 124.6 basis points; respectively. Conversely, Services recorded decline during the month to 0.47%.

    “On a year-on-year basis, the urban inflation rate in July 2025 was 22.01%. On a month-on-month basis, the urban inflation rate was 1.86% in July 2025, fell by 0.25% compared to June 2025 (2.11%).

    “The rural inflation rate in July 2025 was 21.08% on a year-on-year basis. On a month-on-month basis, the rural inflation rate in July 2025 was 2.30%, increased by 1.67% compared to June 2025 (0.63%).

    “The all-item index for July 2025, All Items inflation rate on a Year-on-Year basis was highest in Borno (34.52%), Niger (27.18%), and Benue (25.73%), while Yobe (11.43%), Zamfara (12.75%), and Katsina (15.64%) recorded the lowest rise in Headline inflation on a Year-on-Year basis.

    “On a Month-on-Month basis, however, July 2025 recorded the highest increases is in Borno (6.11%), Zamfara (5.72%), Kano (4.31%), while Bauchi (0.26%), Katsina (0.30%), and Anambra (0.37%) recorded the lowest rise in Month-on-Month inflation.

    “State-level analyses of the food index in July 2025, Food inflation on a Year-on-Year basis was highest in Borno (55.56%), Osun (29.10%), Ebonyi (29.06%), while Katsina (6.61%), Adamawa (9.90%), and Zamfara (14.72%) recorded the slowest rise in Food inflation on a Year-on-Year basis.

    On a Month-on-Month basis, however, July 2025 Food inflation was highest in Borno (10.89%), Kano (10.86%), and Sokoto (7.43%), while Zamfara (-6.00%), Bauchi (-2.18%) and Abia (-1.06%), recorded decline in Food inflation on Month-on-Month basis.

  • CBN Gov gives reason for decline in headline inflation

    CBN Gov gives reason for decline in headline inflation

    Mr Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has attributed the decline in headline inflation in June to moderation in energy prices and stability in the foreign exchange market.

    Cardoso said this on Tuesday in Abuja while presenting a communiqué from the 301st meeting of the apex bank’s Monetary Policy Committee (MPC).

    He noted, however, that there was an uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures.

    According to him, continued global uncertainties associated with tariff wars and geopolitical tensions can further exacerbate supply chain disruption and exert pressure on the prices of imported items.

    “Members also noted the continued stability in the banking system, evidenced by the stable Financial Soundness Indicators (FSIs), which would further be supported by the ongoing banking recapitalisation exercise,” he said.

    He added that eight banks had fully met the recapitalisation requirements, while others are making progress toward meeting the deadline.

    “The MPC, thus, urged the management of the CBN to sustain its oversight of the banking system to ensure continued resilience, safety, and soundness of the financial system.

    “Regarding price and other domestic developments, headline inflation (year-on-year) declined to 22.22 per cent in June from 22.97 per cent in May, primarily driven by the moderation in energy prices, especially cooking gas, wood charcoal, and diesel.

    “Food inflation (year-on-year), however, rose to 21.97 per cent in June from 21.14 per cent in May, attributed mainly to the increase in the cost of processed food.

    “Core inflation, that is, all items less farm produce and energy, also increased to 22.76 per cent in June from 22.28 per cent in May,” Cardoso stated.

    He said that this reflected an uptick in the cost of Information and Communication, Housing and Utilities, and Personal Care and Social Services.

    According to him, on a month-on-month basis, headline inflation rose to 1.68 per cent from 1.53 per cent, largely due to increases in the price of services and imported food.

    He also said that the MPC acknowledged the efforts of the Federal Government in improving security and its impact on food production.

    “Members urged the government to continue its support toward the timely provision of high-yield seedlings, fertilisers, and other critical inputs for the current farming season,” he said.

    The MPC had earlier announced the retention of the Monetary Policy Rate (MPR) at 27.5 per cent. All 12 MPC members present at the meeting also voted unanimously to hold all key monetary parameters constant.

    The committee also retained the Cash Reserve Ratio (CRR) at 50 per cent for deposit money banks and 16 per cent for merchant banks. It also retained the liquidity ratio at 30 per cent and the Asymmetric Corridor at +500/-100 basis points.

  • Nigeria’s inflation rate further eases to 22.22% in June

    Nigeria’s inflation rate further eases to 22.22% in June

    The National Bureau of Statistics (NBS), says Nigeria’s headline inflation rate eased further to 22.22 per cent in June 2025.

    The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for June 2025, which was released in Abuja on Wednesday.

    According to the report, the headline inflation showed a decrease of 0.76 per cent compared to the  22.97 per cent recorded in May 2025.

    Furthermore, the report said ‘on a month-on-month’, the headline inflation rate in June 2025 was 1.68  per cent, which was 0.15  per cent higher than the rate recorded in May 2025 at 1.53  per cent.

    “ This means that in June 2025, the rate of increase in the average price level was higher than the rate of increase in the average price level in May 2025.”

    The report said the increase in the headline index for  May 2025 was attributed to the increase in some items in the basket of goods and services at the divisional level.

    It said the three major contributors to the headline inflation on a year-on-year basis were Food and non-alcoholic Beverages at 8.89 per cent, Restaurants and  Accommodation Services at 2.87 per cent, and Transport at 2.37per cent.

    The report showed the least contributors were Recreation, Sport, and Culture at 0.07 per cent, Alcoholic Beverages, Tobacco, and Narcotics at  0.08 per cent, and Insurance and Financial Services at 0.10 per cent.

    The report said the food inflation rate in June 2025 was 21.97  per cent on a year-on-year basis, which was 18.90 per cent points lower compared to the rate recorded in June 2024 at 40.87 per cent.

    “ The significant decline in the annual food inflation figure is technically due to the change in the base year.”

    It said on a month-on-month basis,  the food inflation rate in June was 3.25  per cent, which increased by 1.07  per cent compared to the 2.19   per cent recorded in May 2025.

    The NBS said the increase in food inflation was attributed to the reduction in average prices of items such as of Green Peas (Dried), Pepper (Fresh), Shrimps (white dried), Crayfish, Meat (Fresh), Tomatoes (Fresh), Plantain Flour, Ground Pepper, etc

    The report said that “all items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 22.76  per cent in June  2025,  on a year-on-year basis.

    “On a month-on-month basis, the Core Inflation rate was 2.46  per cent in June,  which increased by  1.36  per cent   compared to the 1.10 per cent recorded in May  2025.”

    The NBS said for the newly introduced sub-indices, on a month-on-month basis, Farm Produce and Goods stood at -13.3 per cent and 0.93 per cent compared to May 2025, which were 22.38 per cent and 9.39 per cent, respectively.

    “Conversely, Services and Energy stood at 3.26  per cent and -11.0 per cent compared to 1.79 per cent and -0.43 per cent recorded in May, respectively.*

    The report said that on a year-on-year basis in June  2025, the urban inflation rate was 22.72 per cent.

    “On a month-on-month basis, the urban inflation rate was 2.11 per cent  in June 2025, which increased  by 0.71 per cent compared to May at 1.40 per cent.”

    The report said in June, the rural inflation rate was 20.85 per cent on a year-on-year basis.

    “On a month-on-month basis, the rural inflation rate was 0.63   per cent in June, which decreased  by 1.2  per cent compared to May at 1.83  per cent.”

    On states’ profile analysis, the report showed that in June,  all items index inflation rate on a year-on-year basis was highest in Borno at 31.63  per cent, followed by Abuja at 26.79  per cent and Abuja at 25.91  per cent.

    It said the slowest rise in headline inflation on a year-on-year basis was recorded in Zamfara at  9.90 per cent, followed by Yobe at 13.51 per cent, and  Sokoto at 15.78 per cent.

    The report, however, said in June 2025, the inflation rate on a month-on-month basis was highest in Ekiti at 5.39  per cent, followed by Delta at 5.15 per cent, and Lagos at 5.13 per cent.

    “Zamfara -6.89  per cent, followed by Niger at -5.53 per cent and Plateau at -4.01  per cent recorded the slowest rise in month-on-month inflation.”

    The report said on a year-on-year basis, food inflation was highest in Borno at 47.40 per cent, followed by Ebonyi at 30.62   per cent, and Bayelsa at 28.64  per cent.

    “Katsina at 6.21 per cent, followed by Adamawa at 10.90   per cent and Sokoto at 15.25 per cent recorded the slowest rise in food inflation on a year-on-year basis.’’

    The report, however, said on a month-on-month basis, food inflation was highest in Enugu at 11.90  per cent, followed by Kwara at 9.97 per cent, and  Rivers at 9.88  per cent.

    “Borno at -7.63  per cent, followed by  Sokoto at -6.43  per cent and Bayelsa -6.34 per cent, recorded the slowest rise in inflation on a month-on-month basis.”

    The NBS said based on the recent rebasing of the CPI,  hence, the CPI rose to 123.4 in June  2025, which  reflected  a 2.0 point increase from June  2025.

    NAN recalls that the NBS recently rebased the CPI, bringing the base year closer to the current period, from 2009 to 2024, with 2023 as the reference period for expenditure weights.

    The Statistician-General of the Federation, Adeyemi Adeniran, said the rebasing was designed to ensure that Nigeria’s economic indicators accurately reflect the current structure of the economy.

    According to him, this is done by incorporating new and emerging sectors, updating consumption baskets, and refining data collection methods.

  • Inflation rate further eases to 22.97% in May – NBS

    Inflation rate further eases to 22.97% in May – NBS

    The National Bureau of Statistics (NBS), says Nigeria’s headline inflation rate eased further to 22.97 per cent in May 2025.

    The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for May 2025, which was released in Abuja on Monday.

    According to the report, the headline inflation showed a decrease of 0.74 per cent compared to the  23.71 per cent recorded in April 2025.

    Furthermore, the report said on a month-on-month basis, the headline inflation rate in May 2025 was 1.53 per cent, which was 0.33  per cent lower than the rate recorded in April  2025 at 1.86  per cent.

    The report said the increase in the headline index for  May 2025 was attributed to the increase in some items in the basket of goods and services at the divisional level.

    It said the three major contributors to the headline inflation were Food and non-alcoholic Beverages at 9.20 per cent, Restaurants and  Accommodation Services at 2.97 per cent, and Transport at 2.45 per cent.

    The report showed the least contributors were Recreation, Sport, and Culture at 0.07 per cent, Alcoholic Beverages, Tobacco, and Narcotics at  0.09 per cent, and Insurance and Financial Services at 0.11 per cent.

    The report said the food inflation rate in May  2025 was 21.14 per cent on a year-on-year basis.

    It said on a month-on-month basis,  the food inflation rate in May was 2.19 per cent, which increased by 0.13 per cent compared to the 2.06  per cent recorded in April 2025.

    The NBS said the increase in food inflation was attributed to the reduction in average prices of items such as Yam, Avenger (Ogbono/Apon), Cassava Tuber, Maize Flour, Fresh Pepper, Sweet Potatoes, etc.

    The report said that “all items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 22.28   per cent in May 2025  on a year-on-year basis.

    “One a month-on-month basis, the Core Inflation rate was 1.10  per cent in May, which decreased by  0.24 percentage points  compared to the 1.34  per cent recorded in April 2025 .”

    The NBS said for the newly introduced sub-indices, on a month-on-month basis, Farm Produce and Goods stood at 22.38 per cent and 9.39 per cent compared to April 2025, which were 0.95 per cent and 1.89 per cent, respectively.

    “Conversely, Services and Energy stood at 1.79 per cent and -0.43 per cent compared to 2.20 per cent and 13.6 per cent recorded in April, respectively.*

    The report said that on a year-on-year basis in May   2025, the urban inflation rate was 23.14 per cent.

    “On a month-on-month basis, the urban inflation rate was 1.40   in May  2025, which increased  by 0.22  per cent compared to April  at 1.18 per cent.”

    The report said in May, the rural inflation rate was 22.70 per cent on a year-on-year basis.

    “On a month-on-month basis, the rural inflation rate was 1.83   per cent in May, which decreased  by 1.72  per cent compared to April  at 3.56  per cent.”

    On states’ profile analysis, the report showed that in May,  all items index inflation rate on a year-on-year basis was highest in Borno at 38.93 per cent, followed by Niger at 34.97 per cent and Plateau at 32.35 per cent.

    It said the slowest rise in headline inflation on a year-on-year basis was recorded in Katsina at 16.25 per cent, followed by Adamawa at 18.20 per cent, and Delta at 18.41 per cent.

    The report, however, said in May 2025, inflation rate on a month-on-month basis was highest in Bayelsa 9.11 per cent, followed by Bauchi at 4.85  per cent, and Borno at 4.42 per cent.

    “Kaduna at -6.75  per cent, followed by Jigawa  at -4.40 per cent and Edo at -2.94  per cent recorded the slowest rise in month-on-month inflation.”

    The report said on a year-on-year basis, food inflation was highest in Borno at 64.34  per cent, followed by Bayelsa at 39.85  per cent, and Taraba at 38.58 per cent.

    “Katsina at 6.90  per cent, followed by Rivers at 9.18   per cent and Kwara at 11.31   per cent recorded the slowest rise in food inflation on a year-on-year basis.’’

    The report, however, said on a month-on-month basis, food inflation was highest in Bayelsa at 12.68  per cent, followed by Cross River at 11.15  per cent, and Anambra at 9.10 per cent.

    “Katsina at -5.42 per cent, followed by  Jigawa at -4.02 per cent and Kaduna -3.27per cent, recorded the slowest rise in inflation on a month-on-month basis.”

    The NBS said based on the recent rebasing of the CPI,  hence, the CPI rose to 121.35 in May 2025, which  reflected  a 1.83-point increase from April 2025.

    Recall that the NBS recently rebased the CPI, bringing the base year closer to the current period, from 2009 to 2024, with 2023 as the reference period for expenditure weights.

    The Statistician-General of the Federation, Adeyemi Adeniran, said the rebasing was designed to ensure that Nigeria’s economic indicators accurately reflect the current structure of the economy.

    According to him, this is done by incorporating new and emerging sectors, updating consumption baskets, and refining data collection methods.

  • Inflation decline, not by chance – FG

    Inflation decline, not by chance – FG

    The Federal Government says the gradual decline of headline inflation rate, as reported by the National Bureau of Statistics (NBS), is not by chance, but benefit of the administration’s  reforms and focused interventions.

    The Minister of Information and National Orientation, Alhaji Mohammed Idris, stated this on Friday in Abuja at the eighth edition of the Ministerial Press Briefing Session.

    “The NBC released the Consumer Price Index (CPI) for April 2025, yesterday.

    “According to the report, the headline inflation rate for April stood at 23.71 per cent, representing a decrease of 0.52 per cent from the 24.23 per cent recorded in March 2025.

    “Similarly, month-on-month inflation dropped by a notable 2.04 per cent-from 3.90 per cent in March to 1.86 per cent in April.

    “This has not happened by chance. The president’s focused interventions are clearly paying off. The benefits of reform, though gradual, are real and measurable,” he said.

    The minister added that one of the major drivers of inflation which is food prices had been brought under control through the administration’s significant interventions, leading to a noticeable reduction in the cost of food items.

    He assured that President Bola Tinubu led-administration would sustain the momentum of economic improvement by prioritising people-centered policies and promoting shared prosperity for all Nigerians.

    He also assured that the administration would sustain the momentum by providing relief and restoring economic stability.

    The Minister stated that Nigeria is turning a corner, and urged the media to continue disseminating the positive developments responsibly and constructively.

    He emphasised that the government would remain accountable to the people.

  • BREAKING: NBS releases fresh inflation rate figures

    BREAKING: NBS releases fresh inflation rate figures

    The National Bureau of Statistics (NBS) has released inflate rate figures for the month of April 2025, disclosing that headline inflation rate eased to 23.71% relative to the March 2025 headline inflation rate of 24.23%.

    TheNewsGuru.com (TNG) reports NBS released the inflation rate figures on its website on Thursday while maintaining that the Consumer Price Index (CPI) rose to 119.52 in April 2025.

    According to the bureau, the April 2025 headline inflation rate showed a decrease of 0.52% compared to the March 2025 headline inflation rate.

    Recall that NBS recently rebased the CPI to replace outgoing reference periods (2009) while explaining that rebasing aligns the price and weight reference periods with the current economic environment, ensuring methodological accuracy, updating the composition of the goods and services basket, revising item weights, and incorporating necessary improvements.

    “Since consumption patterns evolve, the CPI basket is updated regularly, including the addition of new items. The weight reference period is now 2023, and the price reference period (Base year) is 2024. The updated CPI covers 934 product varieties classified into 13 divisions under the COICOP 2018 framework.

    “The CPI framework includes indices such as the Urban National Index, Rural National Index, Headline Index, Food Index, Core Index, Imported Food Index, Goods Index, Services Index, Energy Index, All Items Less Farm Produce Index, and Farm Produce Index. This system ensures accurate price tracking across different sectors and regions, supporting economic analysis and policy formulation,” the NBS stated.

    Meanwhile, according to the April 2025 CPI report, on a month-on-month basis, the headline inflation rate in April 2025 was 1.86%, which was 2.04% lower than the rate recorded in March 2025 (3.90%), meaning that in April 2025, the rate of increase in the average price level is lower than the rate of increase in the average price level in March 2025.

    The report reads: “The Consumer Price Index (CPI) rose to 119.52 in April 2025, reflecting a 2.18-point increase from the preceding month. In April 2025, the Headline inflation rate eased to 23.71% relative to the March 2025 headline inflation rate of 24.23%.

    “Looking at the movement, the April 2025 Headline inflation rate showed a decrease of 0.52% compared to the March 2025 Headline inflation rate.

    “On a year-on-year basis, the Headline inflation rate was 9.99% lower than the rate recorded in April 2024 (33.69%). This shows that the Headline inflation rate (year-on-year basis) decreased in April 2025 compared to the same month in the preceding year (i.e., April 2024), though with a different base year, November 2009 = 100.

    “Furthermore, on a month-on-month basis, the Headline inflation rate in April 2025 was 1.86%, which was 2.04% lower than the rate recorded in March 2025 (3.90%). This means that in April 2025, the rate of increase in the average price level is lower than the rate of increase in the average price level in March 2025”.

  • FG to reduce inflation, create more jobs – Edun

    FG to reduce inflation, create more jobs – Edun

    The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Federal Government plans to reduce inflation rate to single digit and create more jobs.

    Edun stated this during a press conference addressed by the Nigerian economic team, as part of activities marking the end of the 2025 the International Monetary Fund (IMF) and World Bank Spring Meetings on Saturday in Washington D.C.

    He said that the government was collaborating with development partners like the World Bank to create jobs for Nigerians in pursuit of sustainable employment and poverty eradication.

    “The objective is to create jobs locally, empower youths, and support them through essential infrastructure.

    “That includes digital infrastructure, access to data, internet, and fibre optic networks, to enable them to work remotely,” the minister said.

    Edun said that the country’s unemployment rate had dropped to 4.3 per cent in the second quarter of 2024 from 5.3 per cent in first quarter 2024.

    According to him, the world now faces a very uncertain future, but Nigeria is well positioned to survive the shocks in spite of heightened tensions, inflation, and declining global growth.

    The minister also said that President Bola Tinubu’s reform agenda were working and the results were commendable.

    The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said that the government acknowledged the impact of inflationary pressures on the country.

    “We recognise that inflation remains the most disruptive force to the economic welfare of Nigerians.

    “Our policy stance is firmly focused on bringing inflation down to single digits in a sustainable manner over the medium term,” Cardoso said.

    The CBN governor said that the painful reforms embarked upon by the country was now yielding positive results.

    “At the IMF meetings the nation was a reference point of how reforms could change the economic trajectory of a nation for the better.

    “The reforms are not easy, but they are delivering results. We have moved from a position of vulnerability towards one of growing strength,” he said.

    Cardoso said that the significance of Nigeria’s efforts was restoring investors confidence.

    “The country had a high-level investment forum at the Nasdaq Market Site in New York.

    “That gave insights into the positive impact of the reforms and growing appetite for investment in Nigeria by Diaspora Nigerians and non-Nigerians.

    “The New York forum delivered powerful outcomes, it significantly bolstered investor confidence in the country’s market fundamentals, with leading voices affirming the country’s economic progress and renewed standing as a compelling investment destination,” he said.

    The CBN governor said that the country  recorded a balance of payments surplus of 6.83 billion dollars in 2024, principally on the back of rising exports and capital inflows.

    According to him, this has supported the stability of the domestic unit amidst boosted investor confidence, discouraged speculative arbitrage and closed the gap between official and parallel market rates.

    Cardoso said that the recapitalisation efforts were gaining momentum with maximum support and compliance from all stakeholders in the banking sector.

    He said that the Tinubu-led government planed to set the nation on an ambitious trajectory of becoming a one trillion dollar economy by 2030.

    According to him, the CBN has set the capital base for financial lenders nationwide, highlighting its goal of enhancing banks’ ability to fund large-scale projects and drive economic activities.

    “The banking sector recapitalisation is well underway, with strong momentum and stakeholder alignment,” Cardoso said.

    The Chairman of the Senate Committee on Finance, Sen. Sani Musa, said that the country was doing well to reposition the financial system so as to restore confidence.

    “The economic team of this administration is doing very well on the fiscal aspect of our economy, so that poverty will be reduced.

    “I think we have done all the needful in terms of activities to the tax reform bills to make them workable,” he said.

    NAN recalls that the delegation, which was led by Edun, include Cardoso, Director-General of the Debt Management Office, Patience Oniha, and other top government officials.

    The delegation had a series of meetings with fund managers, global financial leaders, and multilateral institutions investors.

    Also, meetings were held with other development partners to cement existing relationships, create new partnerships and spread the news of the dividends of Nigeria’s economic reforms.

  • IMF tells FG to tighten monetary policy over inflation concerns

    IMF tells FG to tighten monetary policy over inflation concerns

    The International Monetary Fund (IMF) has said a tight monetary policy stance is required to firmly guide inflation down in Nigeria.

    Axel Schimmelpfennig, IMF’s mission chief for Nigeria, said this in a statement on Friday following his visit to hold discussions for the 2025 Article IV Consultations with Nigeria.

    Schimmelpfennig led an IMF team to Lagos and Abuja from April 2 to 15 and issued the following statement:

    “The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth.

    “The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved.

    “Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.

    “The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy.”

    He said the reforms since 2023 had put the Nigerian economy in a better position to navigate the external environment.

    Schimmelpfennig said looking ahead, macroeconomic policies needed to further strengthen buffers and resilience while creating enabling conditions for private sector-led growth.

    He said the Nigerian authorities communicated to the mission that they would implement the 2025 budget in a manner that was responsive to the decline in international oil prices.

    Schimmelpfennig said a neutral fiscal stance would support monetary policy to bring down inflation.

    “To safeguard key spending priorities, it is imperative that fiscal savings from the fuel subsidy removal are channelled to the budget.

    “In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported programme to provide relief to those experiencing food insecurity.

    “A tight monetary policy stance is required to firmly guide inflation down.”

    He said the Monetary Policy Committee’s data-dependent approach had served Nigeria well and would help navigate elevated macroeconomic uncertainty.

    “Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”

  • Nigeria’s inflation increases to 24.23% in March 2025

    Nigeria’s inflation increases to 24.23% in March 2025

    Nigeria’s headline inflation rate rose to 24.23% in March 2025, according to the official government data source, the Nigeria Bureau of Statistics (NBS).

    The rise in the country’s inflation rate, from 23.18% back in February 2025 to 24.23% in March 2025, reflected a major increase in the rising commodity and energy costs in the last few weeks.

    According to the March 2025 Consumer Price Index (CPI) Report which measures the inflation rate released by the government agency on Tuesday, the country’s food inflation rate was 21.79% year-on-year in March 2025.
    The food inflation rate, however, showed a decrease compared to the food inflation rate of 23.51% recorded in February 2025.

    Economists had predicted that the country’s inflation rate which decreased minimally in February would rise when the Dangote Refinery and the state-run NNPCL got entangled in a petrol price war that culminated in the temporary termination of a naira-for crude agreement between the two oil companies and the subsequent increase in the pump price of petrol.

    Some observers had also said the minimal reduction in the prices of food commodities experienced earlier in February was not sustainable, attributing the temporary decline in the prices of food to the importation intervention of the Federal Government.

    Food and commodity inflation have skyrocketed as Nigerians battle what can pass for the worst cost of living crisis since the country’s independence over six decades ago, a development that economic wizards have attributed to President Bola Tinubu’s twin policies of petrol subsidy removal and unification of the forex rates.

  • Inflation: Nigerians want FG to implement favorable policies

    Inflation: Nigerians want FG to implement favorable policies

    Nigerians have called on  the Federal Government to implement effective policies to reduce inflation and strengthen the economy.

    Many residents of the Federal Capital Territory (FCT) told NAN in Abuja on Sunday that this would lead to economic growth and stability that benefits all citizens.

    Recall that the National Bureau of Statistics (NBS) had recently released the rebased  Consumer Price Index Report showing Nigeria’s headline inflation for January 2025 at  24.48 per cent on a year-on-year basis.

    The  Food Inflation for January 2025 was 110.03, which resulted in a food inflation rate of 26.08 per cent on a year-on-year basis.

    The NBS said the increase was mainly driven by Food and Non-alcoholic Beverages, Restaurants and Accommodation Services and Transport.

    However, the NBS explained that the current CPI results did not indicate a reduction in the prices of goods and services in the market but rather measured the rate at which those prices are decreasing.

    Mr Kennedy Okoli, a businessman, said that inflation was significantly impacting the populace, leading to heightened economic challenges.

    Okoli called upon the Federal Government to take urgent action to effectively address this critical issue with effective sustainable policies.

    He said the rebasing of the CPI was a good idea but the results did not reflect the current realities.

    ” It is good to do rebasing but the government needs to address this inflation urgently, especially food inflation.

    “Nigerians are hungry, food and transportation costs are on the increase.

    ” It may look like things are changing on paper but the current reality says otherwise. ”

    Mrs Olabisi Samuel, a Public Servant said inflation was still on the increase, calling on the Federal Government’s intervention.

    Samuel said proper policies and reforms should be put in place to ensure the economy picks up.

    “The living standards of Nigerians are declining daily, their purchasing power is limited, and many cannot afford even the basic necessities of life.

    “The government must show commitment to people by taking concrete steps and making immediate efforts to improve the economy and one way is by addressing the issue of inflation,” she said.

    Mr Tunde Ajani,  an Entrepreneur said that inflation was still on the increase judging from the prices of goods and services in the market.

    Ajani called on the government at all levels to take proactive steps to address inflation which he said would help reduce the burden Nigerians were facing.

    ” The government needs to nip this rising inflation in the board. They should look at the sectors contributing to the rising inflation, especially food and transportation.

    “Insecurity needs to be addressed so farmers can go to their farms and the cost of transportation needs to also be reduced.

    “Since the removal of fuel subsidy, the cost of transportation has skyrocketed affecting everything.

    “However, we must commend Dangote for helping to reduce the pump price of petrol in the last three months. We pray the price drops further down because this will bring some relief to Nigerians.”

    Mr Nura Idris, a businessman,  said that small businesses were significantly impacted by the rising inflation as he called on the Federal Government to formulate policies to help small businesses.

    Nura said small businesses should be given single-digit interest loans to help their businesses stay afloat.

    “If business owners still have to pay high transportation costs, depend more on diesel and fuel to run their business and continue to pay higher electricity tariffs, inflation will still be on the increase.

    “This is because they will transfer all these costs, which are increasing daily, to the consumers.

    “The government needs to show Nigerians they are serious in addressing the issue of inflation.

    “If they can do this, it will also attract investors because nobody wants to invest in an unstable economy,” he said.

    Experts continue to call on the Federal Government to address insecurity as well as the cost of transportation, and adopt mechanised farming as some ways to address inflation.