Nigeria’s cost of living crisis worsened in March 2025, as headline inflation rose to 24.23 per cent, up from 23.18 per cent recorded in February.
The latest data released by the National Bureau of Statistics (NBS) on Tuesday showed a 1.05 percentage point increase, continuing the steady rise in the prices of goods and services across the country.
On a month-on-month basis, inflation surged by 3.90 per cent in March, significantly higher than the 2.04 per cent recorded in February, indicating a faster rise in the general price level.
The report stated, “In March 2025, the Headline inflation rate rose to 24.23 per cent relative to the February 2025 headline inflation rate of 23.18 per cent. Looking at the movement, the March 2025 Headline inflation rate showed an increase of 1.05 per cent compared to the February 2025 Headline inflation rate.”
It added, “Furthermore, on a month-on-month basis, the Headline inflation rate in March 2025 was 3.90 per cent, which was 1.85 per cent higher than the rate recorded in February 2025 (2.04 per cent). This means that in March 2025, the rate of increase in the average price level is higher than the rate of increase in the average price level in February 2025.”
According to the NBS, the Consumer Price Index (CPI) rose to 117.34 in March, representing a 4.40-point increase from the previous month.
Food prices continue to be the main driver of inflation, with food and non-alcoholic beverages contributing the highest to the headline rate (9.28 per cent), followed by restaurants and accommodation services (2.99 per cent), transport (2.47 per cent), and housing, water, electricity, gas and other fuels (1.95 per cent). Other contributors include education (1.44 per cent), health (1.40 per cent), and clothing and footwear (1.17 per cent).
Food inflation stood at 21.79 per cent in March, up from 20.01 per cent in February. On a monthly basis, food prices rose by 2.18 per cent. The bureau attributed this rise to increases in the prices of fresh ginger, yellow garri, Ofada rice, honey, fresh pepper, potatoes, and plantain flour.
The NBS noted, “The increase can be attributed to the rate of increase in the average prices of ginger (fresh), garri (yellow), broken rice (ofada), honey (natural production), crabs, potatoes, plantain flour, periwinkle (unshelled), pepper (fresh), etc.”
The country has been grappling with a surge in food prices, worsened by the removal of fuel subsidies and the floating of the naira in 2023 by President Bola Tinubu. These policies have sharply increased the cost of basic goods and services, pushing more Nigerians into poverty.
Despite the President declaring a state of emergency on food insecurity in July 2023 and rolling out measures such as suspending import duties on certain food items, food inflation has remained high.
Core inflation, which excludes volatile items like food and energy, stood at 24.43 per cent year-on-year, with a month-on-month increase of 3.73 per cent in March, compared to 2.52 per cent in February. This points to broader price pressures in non-food goods and services.
Urban dwellers felt the brunt of inflation more than their rural counterparts. Urban inflation rose to 26.12 per cent year-on-year, while rural inflation was 20.89 per cent. On a monthly basis, urban inflation was 3.96 per cent, while rural inflation stood at 3.73 per cent.
State-level analysis showed Kaduna topping the inflation chart with a year-on-year rate of 33.33 per cent, followed by Osun (32.08 per cent) and Kebbi (30.74 per cent). The lowest inflation rates were recorded in Akwa Ibom (12.81 per cent), Bayelsa (14.02 per cent), and Sokoto (14.83 per cent).
In terms of monthly changes, Kaduna again recorded the highest rise at 18.85 per cent, while Sokoto, Nasarawa, and Kwara recorded declines.
Food inflation was most severe in Oyo (34.41 per cent), Kaduna (31.14 per cent), and Kebbi (30.85 per cent). Bayelsa (9.61 per cent), Adamawa (12.41 per cent), and Akwa Ibom (12.60 per cent) recorded the slowest increases in food prices.
As the inflationary pressure continues to rise, concerns are growing about the impact on household purchasing power, especially as many Nigerians already struggle to afford basic necessities.
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