The National Bureau of Statistics (NBS) has recently shared some important information about inflation in Nigeria, particularly focusing on the prices of certain goods. According to their latest report, alcoholic drinks, tobacco products, and illegal drugs have seen the highest inflation rate at 14.80% as of January 2025. This means that the prices for these items have increased significantly over the past year.
To give a clearer picture, the report includes a graph showing that the next highest inflation rates were for restaurants and accommodation services at 14.14%. Following them were transport services and clothing and footwear, which had inflation rates of 12.77% and 12.73%, respectively.
Overall, the report indicates that the general inflation rate in Nigeria stood at 24.48% in January 2025. This figure means that, on average, prices for all goods and services in the country have risen by about a quarter compared to January 2024.
The NBS has updated its Consumer Price Index (CPI) to reflect this new inflation rate, using 2024 as the new base year instead of 2009. This update was necessary to align the CPI with current economic conditions and how people are actually spending their money today. The new CPI includes a wide variety of products—934 in total—grouped into 13 categories like food, clothing, transport, housing, health, and education.
In this updated CPI, food and non-alcoholic beverages are still the most significant category, making up 40% of the total, although this is a decrease from 51.8% in the previous base year. The report also highlights that inflation affects different categories differently. For example, food and beverages have an inflation rate of 10.64%, which shows that prices for staple foods are still rising.
Other categories also saw varied inflation rates: personal care and miscellaneous services had an inflation rate of 12.04%, while household furnishings and maintenance were at 11.48%. The health sector experienced a lower inflation rate of 9.42%, and costs related to housing and utilities increased by 7.61%. On the other hand, education and financial services had the lowest inflation rates at 4.88% and 4.65%, respectively.
The report also points out a notable difference in inflation rates between urban and rural areas. Urban areas experienced a higher inflation rate of 26.09%, while rural areas had a lower rate of 22.15%. This suggests that people living in cities are facing more significant price increases, particularly in housing, transportation, and dining out.
To ensure the accuracy of these inflation figures, the NBS has improved its data collection methods, moving from paper surveys to digital tools that allow for quicker and more accurate data gathering.
The high inflation rate for alcoholic beverages and tobacco is attributed to several factors, including taxes on these products, fluctuations in currency exchange rates, rising production costs, and disruptions in supply chains.
Interestingly, the report also indicates that Imo State has become the most expensive state to live in Nigeria, surpassing Bauchi State, which held that title for several months. This change is part of the broader adjustments made in the CPI and reflects how the cost of living can vary significantly across different regions.
The Statistician-General of the Federation, Prince Semiu Adeyemi, emphasized the importance of updating the CPI and GDP figures to better reflect the current economic situation. He noted that this process is crucial for informed decision-making and effective governance in Nigeria.
