19th February ,2025
The National Bureau of Statistics (NBS) has announced a decline in Nigeria’s inflation rate to 24.48% year-on-year following the rebasing of the Consumer Price Index (CPI). This adjustment, which aligns price measurement with current economic realities, was revealed by the Statistician-General of the Federation, Prince Adeyemi Adeniran, during a press briefing in Abuja.
Adeniran explained that rebasing the CPI is crucial as consumption patterns evolve over time. “The new base year provides a more accurate reflection of price changes affecting Nigerian consumers. With the rebased CPI, we can ensure our data aligns with global standards and domestic economic realities,” he said.
The latest inflation figures show that food and non-alcoholic beverages, accommodation services, and transport were the main drivers of the increase. The food index stood at 26.08% year-on-year, while core inflation, which excludes farm produce and energy, was recorded at 22.59%. The data also revealed an urban inflation rate of 26.09% compared to the rural rate of 22.15%.
Adeniran highlighted the inclusion of new Special Indices, such as the Farm Produce Index, Energy Index, and Imported Food Index, which will enhance the accuracy of price trend analysis. “For now, these indices compare prices to the base year, but from January 2026, we will begin reporting year-on-year changes,” he added.
The rebasing process, which should typically occur every five years, had not been conducted in over a decade. Adeniran emphasized that the NBS undertook a rigorous and inclusive approach, engaging stakeholders, including the Central Bank of Nigeria (CBN), the International Monetary Fund (IMF), and the Nigerian Economic Summit Group (NESG).
He also acknowledged the support of the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, whose leadership, he said, was instrumental in the successful completion of the process. “This rebasing introduces key methodological improvements, including a shift to the COICOP 2018 classification system, exclusion of non-monetary expenditures, and better categorization of household expenses,” he explained.
With these changes, the NBS aims to provide a more accurate and reliable measure of inflation, ensuring policymakers and businesses have the necessary data to make informed decisions on Nigeria’s economic trajectory.
