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Nigeria’s inflation rate has dropped for the second consecutive month, falling to 23.18% in February 2025 from 24.48% in January. This decline is attributed to a decrease in food prices, which dropped to 23.51% in February from 37.92% in the same month last year.
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Despite this overall decline, three states—Edo, Enugu, and Sokoto—recorded inflation rates exceeding 30%. Edo had the highest inflation rate at 33.59%, followed by Enugu at 30.72% and Sokoto at 30.19%. These states are experiencing intense price pressures due to high food prices, increased transportation costs, and supply chain disruptions.
According to Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, “The inflation rate at 23.18% is still very high… It also implies that there is still work to be done to ease the inflation pressure on the citizens.” Yusuf attributes the decline in inflation to the base effect and stabilisation of the macroeconomic environment.
Professor Segun Ajibola of Babcock University agrees that the drop in energy and food costs is a major driver for the reduced inflation rate. “Whatever is happening to the price of fuel is central to inflationary pressure in a cost-induced environment like ours,” he says
Other experts, such as Prof Uchenna Uzo and Dr. Ikenna Nwosu, also welcome the decline in inflation, citing factors like the rebasing of the Consumer Price Index and decreased demand after the festive season. However, they caution that prices must return to their previous levels or at least move closer to them to achieve true economic relief.
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