By Kazeem Ugbodaga
Nigeria’s headline inflation rate eased for the second straight month in April 2025, settling at 23.71%, down from 24.23% recorded in March, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).
The CPI, which measures the average change in the prices of goods and services, rose to 119.52 in April, representing a 2.18-point increase from the previous month.
However, the NBS report shows that the month-on-month headline inflation stood at 1.86%, significantly lower than March’s 3.90%, signalling a slower pace in the rise of average prices across the economy.
On a year-on-year basis, the inflation picture showed even greater improvement. The April 2025 figure of 23.71% was 9.99 percentage points lower than the 33.69% recorded in April 2024. This reflects a cooling of inflationary pressures despite ongoing economic headwinds.
Urban vs. Rural Trends
The disaggregation of inflation data revealed notable differences between urban and rural areas: Urban inflation stood at 24.29% year-on-year, a sharp drop from 36.00% in April 2024.
On a month-on-month basis, it fell to 1.18% from 3.96% in March — a marked 2.78% point decline.
The 12-month average for urban inflation climbed slightly to 30.41%, up from 30.02% recorded a year earlier.
In rural areas, the NBS said the inflation rate was 22.83% year-on-year, also lower than 31.64% in April 2024. Month-on-month, rural inflation dropped slightly to 3.56%, from 3.73% in March.
The 12-month average rural inflation edged down to 26.29%, compared to 26.38% recorded in April 2024.
Outlook and Implications
The decline in both annual and monthly inflation rates is seen as a welcome development for policymakers and consumers alike, especially amid persistent cost-of-living challenges.
Analysts attribute the moderation to a combination of tight monetary policy, improved food supply in some regions, and a stabilising exchange rate.
However, the elevated CPI level and monthly increases in consumer prices, though at a slower rate, suggest that inflationary risks still linger in key sectors, particularly food, energy, and transportation.
With the Central Bank of Nigeria (CBN) maintaining a hawkish stance in its recent Monetary Policy Committee meetings, further easing of inflation could strengthen investor confidence and improve purchasing power for millions of Nigerians grappling with high living costs.
