Economy News Correspondent
Ruth Ogbechie
The National Bureau of Statistics (NBS) has announced a marginal decline in Nigeria’s headline inflation rate, which dropped to 23.71% in April 2025 from 24.21% recorded in March. This marks the first slight decline in several months, offering a glimmer of hope amid ongoing economic reforms and cost-of-living concerns.
According to the NBS Consumer Price Index (CPI) report released on Thursday, the drop is attributed to a relative easing in food prices and slight improvements in the supply chain, although inflationary pressures remain high across key sectors of the economy.
“The headline inflation rate decreased by 0.50 percentage points compared to the previous month. However, on a year-on-year basis, inflation remains elevated due to structural challenges, currency fluctuations, and energy costs,” the NBS stated.
Food Inflation Remains a Major Concern
Despite the overall decline, food inflation remains stubbornly high at 31.20%, driven by surging prices of staples such as rice, bread, yams, oil, and vegetables. The report noted that while food price growth moderated slightly in urban areas, rural regions continued to experience steep increases due to transportation bottlenecks and insecurity in farming communities.
Core Inflation and Sectoral Impact
Core inflation, which excludes volatile food and energy prices, stood at 19.88% in April, reflecting sustained increases in housing, healthcare, education, and transportation costs. Analysts suggest that while the central bank’s recent monetary tightening has helped to rein in inflation marginally, broader fiscal and structural reforms are necessary to achieve long-term stability.
CBN and Government Responses
In response to the latest figures, the Central Bank of Nigeria (CBN) reiterated its commitment to controlling inflation through a mix of interest rate adjustments and tighter monetary policy. The CBN had earlier raised the Monetary Policy Rate (MPR) to 24.75% in an effort to combat inflationary trends.
Meanwhile, the federal government has renewed its pledge to address key drivers of inflation, including food insecurity, power supply issues, and fuel distribution inefficiencies. Minister of Finance Wale Edun noted that “the administration is working toward stabilizing the naira, supporting local production, and improving infrastructure to ease the cost of doing business.”
Outlook and Public Sentiment
While the marginal decline in inflation is seen as a positive development, many Nigerians say they have yet to feel any tangible relief in their daily lives. Prices of essential goods remain high, and wages have not kept pace with inflation.
Economists warn that unless deeper reforms are implemented, the economy could remain stuck in a cycle of stagflation—slow growth combined with high inflation. However, the slight drop to 23.71% could signal the beginning of a gradual cooling-off, provided current policies are maintained and further interventions are introduced.
