Nigeria's headline inflation has increased to 24.23 per cent in March.
According to a report by the National Bureau of Statistics (NBS), the increase was due to the rise in the average prices of ginger (fresh), garri (yellow), broken rice (ofada), honey (natural production), crabs, potatoes, plantain flour, periwinkle (unshelled), pepper (fresh).
The report noted that the figure was a 1.05 per cent marginal increase from the 23.18 per cent recorded in February.
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Daily Trust reports that this will be the first increase of the inflation figure since the NBS rebased the Consumer Price Index (CPI) earlier in the year.
The report said food inflation was 21.79 per cent on a year-on-year basis but analysis on month-on-month indicated a 0.50 increase to 2.18 per cent from 1.67 per cent recorded in February.
"Looking at the movement, the March 2025 headline inflation rate showed an increase of 1.05% compared to the February 2025 headline inflation rate. Furthermore, on a month-on-month basis, the headline inflation rate in March 2025 was 3.90%, which was 1.85% higher than the rate recorded in February 2025 (2.04%). This means that in March 2025, the rate of increase in the average price level is higher than the rate of increase in the average price level in February 2025," it said.
It explained that contributions of items on the divisional level are: food & non-alcoholic beverages 9.28 per cent, restaurants and accommodation services 2.99 per cent, transport 2.47 per cent, housing, water, electricity, gas, and other fuels 1.95 per cent, education services 1.44 per cent, health 1.40 per cent.
Food inflation highest in Oyo, Kaduna, Kebbi states
According to the report, the price of food commodities increased higher in Oyo (34.41%), Kaduna (31.14%), and Kebbi (30.85%) states when compared with the same month last year.
But Bayelsa (9.61%), Adamawa (12.41%), and Akwa Ibom (12.60%) recorded the slowest rise during the same period.
On a month-on-month basis, food prices increased highest in Oyo (19.74%), Kaduna (17.24%), and Kebbi (14.03%). Sokoto (-14.10%), Nasarawa (-9.91%) and Edo (-5.78%) recorded a decline in food inflation on a month-on-month basis.
"All items inflation rate on a year-on-year basis was highest in Kaduna (33.33%), Osun (32.08%), and Kebbi (30.74%), while Akwa Ibom (12.81%), Bayelsa (14.02%), Sokoto (14.83%) recorded the lowest rise in Headline inflation on year-on-year basis. On a month-on-month basis, however, March 2025 recorded the highest increases in Kaduna (18.85%), Osun (16.49%), Oyo (14.44%), while Sokoto (-8.66%), Nasarawa (-4.38%) and Kwara (-3.69%) recorded the lowest rise in month-on-month inflation. Food Inflation In March 2025."
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Inflation increasing due to instability in Nigeria's economy
Speaking with Daily Trust, Professor of Economics, Prof. Ndubisi Nwokoma, said the increase could be linked to lack of stability in Nigeria's economy.
Prof. Nwokoma said this is evident in the fluctuation of exchange rate and insecurity in rural areas that are the agricultural belt, warning that if these problems are not addressed, rebasing would not bring down the inflation figure.
"The exchange rate has not been stable in the past three months, we were below N1,500 to a dollar in January but have moved to N1,500 and going to N1,600. When this instability occurs in the currency rate it will definitely affect other consumer goods and products.
"Inflation is still high because it is driven by other market indicators like exchange rate, Also, we have increasing insecurity. We have seen herders destroying crops to give their herds, thereby depriving farmers the harvest to feed the populace.
So, if we don't protect our farmers and the farmlands there will be food shortages when you don't have farmers protected. So, when you have all these, inflation will go up no matter how much you rebase it," he said.
