Nigeria’s Inflation Slips to 23.71% — Relief or Mirage?

 

Nigeria’s Inflation Eases to 23.71% Is the Pressure Finally Cooling?

For the first time in months, Nigeria’s headline inflation rate dipped slightly and economists across boardrooms and bus stops are asking the same thing:

Is this real relief, or just a breather before the next spike?

According to the National Bureau of Statistics (NBS), inflation in April 2025 eased to 23.71%, down from 24.23% in March.

What’s Behind the Dip?

• Improved oil earnings buoyed FX reserves (+$364 million)
• Seasonal food supply helped ease pressure on staples
• Naira stability, supported price moderation in key imports
• CBN’s tight monetary stance

But don’t celebrate just yet food inflation is still running wild at 32%+, and energy costs remain elevated.

Inflation Breakdown (April 2025)

Sector	Rate YoY
Headline	23.71%
Food Inflation	32.37%
Core Inflation	20.8%

Source: National Bureau of Statistics

Financial Juggernut Insight:

A slight drop doesn’t mean price stability. It means:

• Traders paused before the next hike
• Policymakers might delay further rate increases
• But structural inflation (fuel, logistics, electricity) is still untamed

In a high-inflation economy, cash is not king, capital preservation is.

What This Means for You

For Households:

• Prioritize non-perishable staples while prices ease
• Budget around real price floors, not CPI headlines

For Investors:

• T-Bills and Commercial Paper still offer 18–30% returns beat inflation
• Stocks like MTN, Geregu, and Flour Mills may benefit from easing FX volatility
• Watch for CBN guidance on future rate adjustments