Nigeria’s economy shows signs of relief as Inflation rate drops to 23.71%

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Nigeria’s inflation rate has declined for the month of April 2025, dropping to 23.71 percent from 24.23 percent in March 2025, according to the National Bureau of Statistics (NBS). The decrease in the inflation rate was driven by a broad-based reduction in the prices of food items and energy.

For further information, read more details here

On a month-on-month basis, inflation also declined to 1.86 percent in April, compared with 3.90 percent recorded in March. Food inflation slowed by 53 basis points from 21.79 percent in March 2025 to 21.26 percent in April 2025.

Experts attribute the decline in inflation to a reduction in the average prices of food items, including maize flour, wheat grain, and rice. However, they remain cautious on the outlook for inflation, citing concerns around continuous stability in food prices, foreign exchange, and energy supply.

Olatunde Amolegbe, managing director of Arthur Steven Asset Management, said, “It’s clear we do not have a trend in terms of the general direction of the rate yet, as it has been fluctuating up and down in the last four months. We will need to see a consistent drop in rates over the next few months before citizens can start heaving a sigh of relief.”

Analysts at SCM Capital expect the headline inflation to ease slightly in May 2025, supported by seasonal food supply improvements and base effects. “Although insecurity and foreign exchange volatility concern persists, moderating exchange rate pressure and improving economic activity offer some relief,” they stated.

The analysts further noted that the declining inflation, easing forex strain, and broader macroeconomic gains strengthen expectations that the Central Bank of Nigeria (CBN) may soften its hawkish stance and adjust monetary policy parameters in the third quarter of 2025.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post