UPDATED: NBS says Nigeria’s inflation figure dropped to 24.48% after rebasing

Nigeria’s annual inflation rate dropped to 24.48 per cent in January from 34.80 per cent in December 2024, the National Bureau of Statistics (NBS) said on Tuesday.

The Statistician General of the Federation and Chief Executive Officer of the NBS, Adeyemi Adeniran, disclosed this in Abuja at the launch of the report of the rebasing of Consumer Price Index (CPI) on Tuesday.

The NBS said the rebased Consumer Price Index (CPI) reflects an updated price reference period (base year) of 2024 and a weight reference period of 2023.

“The All-Items Index which is used to measure headline inflation for January 2025 was 110.7, resulting in a headline inflation rate of 24.48 per cent on a year-on-year basis,” he said.

The NBS boss explained that this increase was mainly driven by food and non-alcoholic beverages, restaurants and accommodation services and transport.

He added that the food index for January 2025 was 110.03, resulting in a food inflation rate of 26.08 per cent year-on-year.

According to him, the core index which is All-Items less farm produce

and energy for January 2025 was 110.7, which gave rise to a core inflation rate of 22.59 per cent year-on-year.

“Disaggregating by sector, the Urban inflation rate was 26.09 per cent, while the Rural Inflation rate was 22.15 per cent.

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“In line with improvements made to the reporting of the CPI, going forward, NBS will be publishing some new special indices to inform policymakers. These special indices include the farm produce index, energy index, services index, goods index, and imported food index,” he said.

He reiterated that the exercise is a routine exercise conducted by statistical offices across the world, and Nigeria is no different.

“The procedure from start to finish has been collaborative, involving experts, both locally and internationally, to ensure that the right procedure and standards are followed and the best quality possible achieved.

“Going forward, with the improvements and quality measures put in place under this exercise, NBS is very confident that these rebased CPI numbers not only reflect the prevailing inflationary pressure in the economy but will also be reflective of the recent consumption pattern of households and consumers,” he said.

Nigeria has experienced a sharp increase in food prices in recent years, a trend that worsened in 2023 following President Bola Tinubu’s removal of petrol subsidies and adoption of a floating exchange rate for the naira.

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This shift has led to a steep increase in the cost of staple food, pushing many Nigerians further into poverty and heightening food insecurity.

The persistent surge in prices over the past year has led to several farms and businesses closing, with many agricultural producers scaling back their output due to insecurity and unpredictable weather conditions affecting rural areas.

In response, Mr Tinubu declared a state of emergency on food insecurity in July 2023, aiming to combat rising food costs. Despite these efforts, at the time, food inflation has continued unabated.

Last July, Mr Tinubu unveiled some proactive measures to address skyrocketing food prices in the country. Amongst it, is the decision to suspend duties, tariffs, and taxes on importing essential food items such as beans, wheat, and husked brown rice.