As of February 2025, Nigeria’s inflation decreased to 23.18%, driven by declines in food inflation and price stabilizations across various sectors. The National Bureau of Statistics reports significant inflation rates across states, with Edo emerging as the most expensive, followed by Enugu and Sokoto. Food prices are central to rising living costs, prompting the need for policy interventions.

In February 2025, Nigeria’s headline inflation rate decreased to 23.18%, continuing a trend from January’s rate of 24.48%. This decline reflects a 1.30% reduction from the previous month and marks a substantial drop of 8.52 percentage points from 31.70% a year earlier. The easing inflation reflects a slowing pace of price increases across various sectors, buoyed by diminishing food inflation and reduced cost pressures in some consumer categories.

According to the National Bureau of Statistics (NBS), food and non-alcoholic beverages were the primary drivers of inflation, contributing 9.28% on a year-on-year basis. Other major contributors included the costs associated with restaurants and accommodation, transport, housing, utilities, and education and health services. On a month-to-month scale, food prices represented the most significant inflation contributor, at 0.82%, followed by accommodation services at 0.26% and transport at 0.22%.

As of February 2025, urban inflation was reported at 25.15%, down from 33.66% in February 2024. Month-on-month urban inflation stood at 2.40%, illustrating continued price rises but at a moderated pace. In contrast, rural inflation was recorded at 19.89%, reflecting a notable decline from the previous year’s 29.99%. Month-on-month rural inflation was only 1.16%, pointing to increased price stability in rural regions in comparison to urban areas.

The food inflation rate in February 2025 was noted at 23.51%, markedly lower than 37.92% in February 2024. The NBS attributes this significant decrease partially to a change in the base year for comparison. In month-to-month assessments, food inflation was 1.67%, indicating a reduction in the pace of food price rises as various key food items, including yam tubers and maize flour, experienced price declines.

Core inflation, which excludes volatile agricultural and energy prices, was established at 23.01% year-on-year for February 2025, down from 25.13% the previous year. On a month-to-month basis, core inflation was 2.52%, suggesting ongoing price increases in non-food and non-energy categories. Despite the ongoing inflationary pressures, the latest data illuminates the states experiencing the most rapid cost of living increases and highlights the impact of rising food prices across regions.

Here is a summary of the 10 most expensive states to live in Nigeria as of February 2025:
1. Edo – 33.6%: This state exhibits the highest inflation rate, with food inflation at 35.1%, indicating a critical elevation in living costs and monthly rises of 10.3%.
2. Enugu – 30.7%: Food inflation stands at 31.6%, illustrating continuing price hikes with month-to-month increases of 4.0% alongside general inflation rising by 4.6%.
3. Sokoto – 30.2%: A high food inflation rate of 38.3% drives living costs, with a monthly food price surge of 18.8% contributing to significant inflation pressure.
4. Imo – 30.1%: Despite a 29.0% food inflation rate, other elements are contributing to the high cost of living, with a monthly overall inflation increase of 2.1%.
5. Zamfara – 29.3%: With food inflation at 28.2%, the state experiences steady inflationary pressure, as indicated by monthly price increases of 3.3%.
6. Abia – 29.2%: Food inflation at 31.9% contributes notably to living costs, though monthly inflation rises are relatively moderate at 1.6%.
7. Gombe – 26.5%: With food prices up 28.5%, there is evidence of persistent inflation with month-on-month increases of 4.2%.
8. Ogun – 25.8%: Here, food inflation is lower at 23.0%, suggesting that higher costs are driven more significantly by other goods and services.
9. Nasarawa – 25.3%: A notable 33.5% annual rise in food prices underscores the rising living costs, along with a 15.3% increase month-on-month.
10. Ebonyi – 25.1%: This state sees food inflation at 28.1%, but having minimal month-on-month increases suggests that inflationary pressures may be stabilizing.

In summary, Nigeria’s inflationary landscape is characterized by a decrease in headline inflation to 23.18%. The most considerable impacts on living costs manifest in certain states, particularly Edo and Enugu, which report the highest inflation rates. Food inflation is a predominant factor influencing these figures, underscoring how key food items significantly affect regional economic conditions. The ongoing trends signify the necessity for policymakers to address inflationary pressures and their repercussions on households and businesses alike.

Original Source: nairametrics.com