According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate increased from 23.18% in February to 24.23% in March 2025. Both household incomes and the overall economy are hurt by this spike.
Following the NBS report available to BrandSpur national news stories, in March 2025, food inflation—a significant factor in headline inflation—rose to 21.79% annually. The high cost of staple foods like rice, ginger, and garri is the reason for this growth. Additionally, core inflation—which does not include volatile energy and agriculture products—rose to 24.43% annually.
Inflation rates in urban and rural areas differ noticeably, according to a detailed examination of the data. Rural inflation was 20.89% annually, whereas urban inflation was 26.12%. Urban inflation increased by 3.96% month over month, up from 2.40% in February. According to field experts, both moderating and rising factors contributed to the March inflation reading.
According to Samuel Oyekanmi, Head of Research at Norrenberger, positive base effects and the ongoing impact of rebasing are anticipated to have a moderating effect. He cautions, too, that rising fuel prices and the naira’s depreciation may result in higher transportation and goods costs.
Continuing, he has this to say: “The continued effect of rebasing and favourable base effects are expected to exert a moderating influence.”
The Central Bank of Nigeria (CBN) may be under increased pressure to tighten monetary policy as a result of the spike in inflation. To strengthen the currency and control inflation expectations, analysts anticipate that the CBN will implement liquidity management measures. Potential upside risks from changes in electricity tariffs and geopolitical disruptions to global supply networks are revealed by the inflation rate projection for Nigeria.
However, Meristem predicts that through the middle of the year, inflation will remain between 20 and 24 percent, indicating that energy prices will likely remain stable and that the devaluation of the naira will moderate.
