Big news from Nigeria’s economy! The National Bureau of Statistics (NBS) just dropped the latest figures, and it looks like inflation is finally taking a breather. But what does this mean for everyday Nigerians? Is your money going further, or is it just a temporary blip? Let’s break it down.
Here’s a quick rundown of what we’ll cover:
- The headline inflation rate and what it means.
- The factors driving the change in food prices.
- Which states are seeing the biggest changes in inflation.
- Expert insights into the future of Nigeria’s economy.
Nigeria’s Inflation Rate: A Sigh of Relief?
According to the NBS, Nigeria’s headline inflation rate has fallen to 22.22% in June 2025, a welcome drop from the 22.97% recorded in May. This is according to data released by the National Bureau of Statistics (NBS). While still high, it’s a significant improvement compared to the situation last year. Specifically, the NBS stated, “On a year-on-year basis, the Headline inflation rate was 11.97% lower than the rate recorded in June 2024 (34.19%).” But before we celebrate too much, let’s dig deeper.
Month-on-Month: A Closer Look
While the year-on-year numbers are encouraging, the month-on-month inflation tells a slightly different story. In June 2025, inflation stood at 1.68 percent – a bit higher than the 1.53 percent in May. This suggests that prices are still rising, just not as quickly as before. The NBS explained, “This means that in June 2025, the rate of increase in the average price level was higher than the rate of increase in the average price level in May 2025.” So, while the overall trend is downward, things are still getting a little more expensive each month.
Food Inflation: What’s on Your Plate?
Food prices are a major driver of inflation in Nigeria, impacting the daily lives of millions. The food inflation rate for June 2025 was 21.97 percent year-on-year, a notable decrease from the 40.87 percent in June 2024. As the NBS noted, “The significant decline in the annual food inflation figure is technically due to the change in the base year.” Keep in mind that rebasing is a common statistical practice that updates the reference point for economic calculations, providing a more current and accurate picture of economic activity. According to the IMF, rebasing is essential for reflecting changes in consumption patterns and production structures.
However, on a month-on-month basis, food inflation actually increased to 3.25 percent in June 2025, up from 2.19 percent in May. The NBS attributes this to rising prices of staples like:
- Green Peas (Dried)
- Fresh Pepper
- Shrimps (white dried)
- Crayfish
- Fresh Meat
- Fresh Tomatoes
- Plantain Flour
- Ground Pepper
Regional Disparities: Where Are Prices Rising Fastest?
Inflation rates vary significantly across Nigeria’s states. On a year-on-year basis, food inflation was highest in:
- Borno (47.40 percent)
- Ebonyi (30.62 percent)
- Bayelsa (28.64 percent)
The slowest increases were recorded in:
- Katsina (6.21 percent)
- Adamawa (10.90 percent)
- Sokoto (15.25 percent)
Month-on-month figures paint a slightly different picture, with the highest food inflation in:
- Enugu (11.90 percent)
- Kwara (9.97 percent)
- Rivers (9.88 percent)
And the slowest increases (or even decreases) in:
- Borno (-7.63 percent)
- Sokoto (-6.43 percent)
- Bayelsa (-6.34 percent)
What Does This Mean for You?
The drop in headline inflation is a positive sign, but it’s important to remember that prices are still rising. The increase in month-on-month food inflation is particularly concerning, as it affects the cost of basic necessities. Keep an eye on local market prices and consider adjusting your spending habits accordingly. To better understand the implications of inflation on personal finances, resources like the Investopedia can offer detailed explanations and strategies.
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