As of February 2025, Nigeria’s inflation rate is at 23.18%, showing a decline. Major contributors include food prices and various consumer categories. The ten most expensive states to live in Nigeria are led by Edo, followed by Enugu and Sokoto, primarily driven by food inflation. Overall inflation rates indicate significant challenges in managing living costs throughout the country.
In February 2025, Nigeria’s headline inflation rate decreased to 23.18%, a notable decline from 24.48% the previous month, as per the report from the National Bureau of Statistics (NBS). This reduction indicates an easing of price increases across vital economic sectors, primarily attributed to moderating food inflation and lower cost pressures in some consumer categories.
Key contributors to inflation include food and non-alcoholic beverages, responsible for 9.28% of the annual inflation rate. Furthermore, other significant sectors influencing inflation comprise restaurants and accommodation services, transport, housing, water, electricity, gas, as well as education and health services. On a month-on-month basis, food prices were the primary inflation driver, contributing to overall inflation alongside the aforementioned sectors.
Urban inflation for February 2025 was recorded at 25.15%, a decrease from 33.66% in the same month of the previous year, while rural inflation was notably lower at 19.89%. Month-on-month urban inflation stood at 2.40%, indicating a persistent rise in prices but at a slower rate. Rural regions displayed stability, with month-on-month inflation at 1.16%, revealing a contrasting pricing environment compared to urban areas.
The food inflation rate decreased to 23.51% year-on-year, considerably lower than the 37.92% from February 2024. This reduction is partly attributed to a change in the base year for measurement. Month-on-month food inflation stood at 1.67%, suggesting a deceleration in food price increases. Key commodities experiencing price declines included yam tubers, potatoes, and maize flour, among others.
Core inflation, which excludes volatile agricultural prices and energy, dropped to 23.01% in February 2025, down from 25.13% the previous year. The month-on-month core inflation rate was 2.52%, indicating that non-food and non-energy items continue to see moderate price increases. This prevailing inflation pressure persists for households and businesses, particularly in states experiencing the highest costs of living.
The latest data illustrates the ten most expensive states to live in Nigeria as of February 2025:
1. Edo – 33.6%: Edo emerges as the most expensive state, driven by food inflation at 35.1% and month-on-month increases of 10.3%.
2. Enugu – 30.7%: With an inflation rate of 30.7% and food inflation at 31.6%, Enugu sees continuous price rises.
3. Sokoto – 30.2%: Sokoto records an inflation rate of 30.2%, largely driven by food inflation at 38.3%.
4. Imo – 30.1%: This state has an overall inflation rate of 30.1%, with food inflation influencing rising living costs.
5. Zamfara – 29.3%: Zamfara sees 29.3% inflation, with food inflation at 28.2%, reflecting steady price levels.
6. Abia – 29.2%: Abia reports an inflation rate of 29.2%, with food prices rising significantly.
7. Gombe – 26.5%: Gombe reports an inflation rate of 26.5%, showcasing persistent increases in food prices.
8. Ogun – 25.8%: Ogun experiences overall inflation at 25.8%, with food inflation and price stability.
9. Nasarawa – 25.3%: Nasarawa ranks ninth with a significant rise in food prices.
10. Ebonyi – 25.1%: With annual inflation at 25.1%, Ebonyi shows signs of stabilizing prices amid rising living costs.
The analysis reveals that as of February 2025, Nigeria is experiencing fluctuating inflation rates, with specific states exhibiting high living costs exacerbated by significant food price increases. Edo, Enugu, and Sokoto are at the forefront, highlighting the importance of monitoring inflation and its impact on daily expenses. The ongoing challenges underscore the need for addressing inflationary pressures to enhance living standards throughout Nigeria.
Original Source: nairametrics.com
