Nigeria’s inflation rate declined for the first time in months as costs moderated slightly in Africa’s largest economy.
According to the latest data released by the National Bureau of Statistics (NBS), the Consumer Price Index (CPI), which measures inflation rate in an economy rose to 119.52 in April 2025 while headline inflation eased to 23.71% from 24.23% in March 2025.
The drop represents a 0.52% decline in the headline inflation rate month-on-month, signaling a marginal slowdown in the rate of increase in general price levels.
On a year-on-year basis, headline inflation fell significantly by 9.99% compared to April 2024, when it stood at 33.69%.
Despite the monthly CPI recording a 2.18-point increase from March to April 2025, the month-on-month headline inflation rate was 1.86%, marking a sharp decline of 2.04% from the 3.90% posted in March. This suggests that while prices are still rising, the pace of the increase has slowed considerably.
The twelve-month average CPI ending April 2025 recorded a 28.5% increase compared to the corresponding period in 2024, representing a 0.4% rise over the 28.1% posted in April 2024.
The deceleration in headline inflation may influence monetary policy decisions as the Central Bank of Nigeria (CBN) continues to grapple with inflationary pressures, exchange rate volatility and sluggish economic growth.
Disaggregated Inflation Figures
Urban Inflation:
Urban inflation recorded a notable decline on both yearly and monthly bases. Year-on-year urban inflation fell to 24.29% in April 2025, down 11.71 percentage points from 36.00% in April 2024. On a month-on-month basis, urban inflation declined to 1.18%, a sharp 2.78% drop from the 3.96% recorded in March 2025.
The twelve-month average urban inflation climbed slightly to 30.41%, compared to 30.02% in the same period last year, reflecting continued underlying pressures in urban centres.
Rural Inflation:
Rural inflation also recorded broad-based easing. Year-on-year, rural inflation declined to 22.83% in April 2025, from 31.64% in April 2024, a drop of 8.81 percentage points. Month-on-month rural inflation was 3.56%, down slightly by 0.17% from 3.73% in March 2025.
The twelve-month average rural inflation dipped marginally to 26.29% in April 2025, compared to 26.38% in April 2024.
Policy Implications
The moderation in headline inflation comes as the Nigerian economy navigates complex monetary and fiscal challenges. While inflation remains significantly above the CBN’s single-digit target, the latest figures could ease pressure on the monetary authority to raise interest rates aggressively at its next Monetary Policy Committee (MPC) meeting.
Analysts expect the easing trend to be cautiously welcomed, though they warn that inflationary risks remain elevated due to currency depreciation, energy cost volatility, and structural supply-side inefficiencies.
The government’s recent interventions in agricultural production, energy distribution, and targeted fiscal supports may be contributing to the easing, but sustainability of the decline remains uncertain.
Investors and market participants will be closely watching subsequent data releases to determine whether April’s deceleration marks a turning point or a temporary reprieve in Nigeria’s inflationary cycle.
