In February 2025, Nigeria’s inflation rate increased to 23.1% amid rising transport costs and consumer spending. Food inflation also surged to 23.51%. Analysts remain cautious about achieving the 2025 inflation target of 15%, suggesting ongoing economic adjustments under President Tinubu’s administration.
In February 2025, Nigeria’s headline inflation rate climbed to 23.1%, driven primarily by rising transport costs linked to increased gasoline prices and heightened consumer spending. The National Bureau of Statistics (NBS) provided this data, indicating a modest rise from the 24.48% inflation rate recorded in January after recent rebasing efforts. As a result of these figures, discussions regarding a potential interest rate hike are anticipated in the forthcoming Monetary Policy Committee meeting later this year.
Food inflation escalated to 23.51% in February, as consumers faced higher costs for food, transportation, and energy. Samuel Onyekanmi, an analyst at Norrenberger, expressed, “I expect to see a slight increase in inflation, going by the frenzy buying typically associated with the festivities and noting that food inflation is still very much on the high, due to the seasonal effect.”
Despite improvements, Onyekanmi indicated skepticism about reaching the targeted inflation rate of 15% by 2025, while acknowledging that achieving such stability could be feasible in the following years. The Central Bank of Nigeria (CBN) has taken steps to stabilize the foreign exchange market, resulting in a recent strength of the naira. Nonetheless, the economy remains in a state of adjustment to the recent price shocks following President Tinubu’s tenure.
In summary, Nigeria’s inflation reached 23.1% in February 2025, propelled by rising transport costs and increased consumer spending. Food inflation also rose significantly, indicating persistent economic challenges. Despite the Central Bank’s efforts to stabilize the naira and manage inflation, the adjustments to price shocks continue, raising questions about future inflation control and economic stability.
Original Source: thecondia.com
