Nigeria’s inflation rate surged back to 24.23% in March 2025, marking a sharp reversal from the temporary relief seen in February and putting renewed pressure on households and businesses across the country. The latest data from the National Bureau of Statistics (NBS) shows core inflation, which excludes volatile food and energy prices, rose even higher to 24.43%, while food inflation moderated slightly to 21.79%.
The resurgence of inflationary pressures comes as Nigeria’s currency, the naira, resumed its downward trajectory in late February and early March, trading above ₦1,400 per dollar in parallel markets. This depreciation erased gains made after the Central Bank’s foreign exchange reforms in the first quarter of the year, forcing importers and manufacturers to pass on higher costs to consumers.
Economist Dr. Ifeanyi Ubah described the situation as deeply concerning, noting that “this isn’t just a temporary fluctuation but a clear indication of fundamental economic imbalances.” He emphasized that currency instability remains the core issue, arguing that without decisive action to stabilize the naira, inflation control measures would continue to provide only short-term relief. Dr. Ubah also pointed to inconsistent government policies, particularly in fuel subsidies and forex management, as key factors undermining economic stability.
Seasonal factors also played a role in March’s price increases. Analysts at Meristem Securities noted that farming constraints during Ramadan and heightened demand during the Eid al-Fitr celebrations contributed to price pressures, particularly for food items. Meanwhile, rising costs in telecommunications and logistics further compounded the inflationary trend.
Samuel Oyekanmi, an analyst at Norrenberger, explained that the March figures reflect a complex interplay between statistical base effects and ongoing cost pressures from currency depreciation and fuel prices. Financial services firm Meristem projects inflation to remain in the 20-24% range through mid-year, though they warn that further foreign exchange volatility or global commodity shocks could worsen the outlook.
The international landscape presents additional challenges. Olajide Oyadeyi of Econoday Inc. highlighted how escalating trade tensions between the U.S. and China could disrupt global supply chains, potentially exacerbating Nigeria’s imported inflation as the country relies heavily on foreign goods for production.
With the Monetary Policy Committee set to meet next month, market watchers anticipate possible tightening measures from the Central Bank to support the naira and contain inflation expectations. However, analysts agree that without addressing the structural issues plaguing Nigeria’s economy – particularly its dependence on imports and inconsistent policy implementation – inflationary pressures are likely to persist.
As Nigerians brace for continued high prices, the March inflation figures serve as a stark reminder of the country’s ongoing economic challenges and the need for comprehensive, coordinated policy solutions to achieve lasting price stability.
