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
