By Zara Maisango
Nigeria’s inflation rate has taken a sharp dive from 34.80% in December 2024 to 24.48% in January 2025, according to the latest report from the National Bureau of Statistics (NBS). However, this dramatic shift does not necessarily mean that prices have fallen. Instead, it is a result of a methodological change in how inflation is calculated.
The NBS recently rebased the Consumer Price Index (CPI), updating the base year from 2009 to 2024 to better reflect current consumption patterns. This adjustment significantly altered the weighting of various components in the inflation basket. The weight of food and non-alcoholic beverages dropped from 51.8% to 40%, while transportation increased from 6.5% to 10.7%.
Statistician-General of the Federation, Adeyemi Adeniran, clarified the implications of this change: “This new figure does not mean prices have gone down. It simply reflects a more accurate method of measuring inflation in line with global best practices.”
Despite the lower inflation figure, many Nigerians continue to grapple with high costs of food, transportation, and essential goods. Economic analysts warn that the real impact on households remains unchanged, as inflation remains high relative to purchasing power.
The Central Bank of Nigeria (CBN) has assured that ongoing economic reforms will gradually stabilize prices. However, for now, the sharp drop in inflation is more of a statistical realignment than a sign of immediate relief for struggling citizens.