A recent report by the Central Bank of Nigeria (CBN) has highlighted rising inflation in the country, attributing it to insecurity, energy costs, hoarding, and infrastructural deficits.
The report, which is part of Nigeria’s Q4 2024 Economic Update, revealed that headline inflation surged to 34.80% year-on-year, up from 32.70% in the previous quarter.
“Inflation remained elevated in Q4 2024, as both food and non-food components of the Consumer Price Index (CPI) basket increased,” the report stated.
Key Drivers of Inflation in Nigeria
The CBN report identified the major factors fueling inflation, including:
✔ Exchange rate volatility
✔ Higher energy costs
✔ Insecurity affecting agricultural production
✔ Infrastructure deficits
✔ Hoarding and supply chain disruptions
Furthermore, it stated:
“Analytical evidence indicates inflation remains widespread, with 74.62% of items in the CPI basket exceeding the historical average of 14.60% (2010-2023), compared to 70.14% in the previous quarter.”
Projections for Inflation in 2025
Despite the current crisis, the CBN anticipates inflation will moderate in 2025, as economic adjustments and policy measures take effect.
Government Claims vs Reality
The National Bureau of Statistics (NBS) recently reported that Nigeria’s headline inflation rate dropped to 24.48% in January 2025 due to a rebasing of the inflation basket to align with global standards.
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However, many Nigerians continue to struggle with skyrocketing food prices, high transport costs, and worsening insecurity, including attacks on farmers by criminal herders.
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