An economic expert has projected a potential further decline in Nigeria’s inflation rate in 2025, citing a combination of government policies and improving macroeconomic conditions.
Dr. Muda Yusuf, CEO of the Centre for Protection of Private Enterprises (CPPE) made this projection while speaking to Nairametrics on Monday.
Dr. Yusuf attributed the current moderation in inflation to two primary factors.
Dr. Yusuf explained, “The further deceleration in inflation rate in February can be ascribed to two factors. The first is the base effect. When we compare the 2025 figures to 2024, you’re likely to see a significant deceleration [in the inflation rate gap]. Inflation is essentially measured on a year-on-year basis, and because prices in 2024 were highly elevated.
“So, the base effect is one major effect that has been responsible for this. And this trend is likely to continue for the larger part of 2025,” he noted.
The second factor is the improvement in macroeconomic stability. “We are beginning to see that the volatility in the exchange rate is beginning to ease,” he noted.
However, he cautioned that despite the reduction, an inflation rate of 23.18% remains high and indicates that price levels are still increasing, albeit at a slower pace.
Public Reactions and Skepticism
While the official data from the National Bureau of Statistics (NBS) suggests a decline in inflation, public reactions on social media indicate widespread skepticism about the accuracy of these figures. Many Nigerians argue that the reduction in inflation is not reflected in the cost of goods and services.
A social media user, Ainà Dipo, commended the government for the improvement, stating, “Inflation drops to 23.18% as prices of food items fall. We must commend the president and his economic team.”
Inflation drops to 23.18% as prices of food items falls.
We must commend the president and his economic team. ✅ pic.twitter.com/z7VuygpOgZ
— Ainà Dipo 🇳🇬 (@dipoaina1) March 17, 2025
However, others expressed doubts about the authenticity of the data. OKWOR II questioned the methodology used by NBS, saying, “What exactly are you guys talking about? How much is a bag of rice? How did y’all come up with these statistics? The current price of cement is how much? How did the inflation reduce by 23.18% while the cost of transportation is still high?”
What exactly are you guys talking about?
How much is a bag of rice ?
How did y’all come up with these statistics?
The current price of cement is how much?
How did the inflation be reduced by 23.18% while the cost of transportation is still high?What methodology did you use ?
— ỌKWỌR II (@IIOkwor) March 17, 2025
Maurice Ekpenyong also raised concerns, stating, “How does this drop in the official inflation rate validate the rising cost of living in Nigeria? Household income is under pressure from increases in food prices, power, telecoms, rent, and transportation.”
How does this drop in the official inflation rate validate the rising cost of living in Nigeria? The household income is under pressure from increase in food prices, power, telecoms, rents, transportation etc.
— Maurice Ekpenyong (@mauriceekpeyong) March 17, 2025
Similarly, Sada Dansabo stressed the importance of transparency, saying, “@NBS_Nigeria great news, right? But let’s be honest, without public trust, these stats are like seasoning a tasteless meal. Transparent data builds trust, and without it, even good numbers might feel like a practical joke. NBS, time to win Nigerians back”
@NBS_Nigeria great news, right? But let’s be honest, without public trust, these stats are like seasoning a tasteless meal. Transparent data builds trust, and without it, even good numbers might feel like a practical joke.
NBS, time to win Nigerians back.— Sada Dansabo (@sdansabo) March 18, 2025
Innocent MC criticized the credibility of government-released statistics, commenting, “It’s entirely a shame and sham act when you stay in the office, dining with politicians and then you compute numbers that don’t agree with the reality in Nigeria. How much was the price of a tuber of yam last year and today? How much is a bag of rice? Etc..”
It’s entirely a shame and sham act when you stay in the office, dinning with politicians and then you compute numbers that don’t agree with the reality in Nigeria. How much is the price of a tuber of yam last year and today? How much is a bag of rice? Etc…
— Innocent MC. (@So_Innocently) March 17, 2025
The latest Consumer Price Index and Inflation report from the National Bureau of Statistics (NBS) reveals that Nigeria’s inflation rate fell to 23.18% in February 2025, down from 24.1% in January 2025.