Nigeria’s headline inflation rate soared to 24.23% in March 2025, up from 23.18% in February, according to data released by the National Bureau of Statistics (NBS). The sharp rise reflects continued pressure from rising commodity prices and recent energy cost spikes.
The March 2025 Consumer Price Index (CPI) report, published by the NBS on Tuesday, highlights how growing economic instability is being driven by disruptions in the energy sector, especially after a fuel price war broke out between Dangote Refinery and the state-run Nigerian National Petroleum Company Limited (NNPCL). The clash led to the temporary suspension of a naira-for-crude oil agreement, which in turn triggered an increase in petrol pump prices nationwide.
While overall inflation climbed, food inflation surprisingly declined slightly year-on-year to 21.79% in March, down from 23.51% in February. Analysts, however, remain cautious, attributing February’s marginal drop to short-lived federal government interventions, including the importation of key food items to ease local shortages.
Despite this brief relief, economists argue that the price correction was unsustainable. The resurgence in March inflation confirms those fears, as households continue to grapple with one of the most intense cost-of-living crises Nigeria has seen since independence.
Market scenes across the country reflect the harsh realities. In Lokoja, vendors like the ones at the Lokoja International Market continue to count dwindling earnings as purchasing power weakens. Similarly, small-scale traders in Lagos’ Balogun Market are experiencing reduced sales as more Nigerians are forced to prioritise essential spending.
The ongoing inflation spike has been widely linked to key policy moves by President Bola Tinubu’s administration, including the removal of petrol subsidies and the unification of forex rates. While both reforms were implemented to stabilize the economy and attract investment, they’ve also triggered widespread price instability and economic hardship for ordinary citizens.
Economic analysts warn that unless energy prices are stabilized and local production is improved, inflation could remain on an upward trajectory in the coming months.
