Akwa Ibom, Bayelsa record lowest inflation rate
Nigeria’s inflation crisis deepened in March 2025 as the headline inflation rate surged to 24.23%, up from 23.18% in February, according to the latest data obtained by Spear News from the National Bureau of Statistics (NBS).
The report says given the volatility in food and energy markets, improved tracking mechanisms could help policymakers respond more swiftly to emerging inflation risks. However, with food supply chains still vulnerable to climate shocks, insecurity, and logistical bottlenecks, short-term relief appears unlikely.
The relentless rise in food prices remains the dominant force behind this upward trend, with food inflation climbing to 21.79% year-on-year, further squeezing household budgets across the country. The month-on-month inflation rate, a more immediate measure of price changes, jumped sharply to 3.96% from 2.40% in February, signaling that inflationary pressures are not only persistent but accelerating.
This suggests that despite monetary and fiscal policy efforts, the cost-of-living crisis is far from abating, with Nigerians continuing to face severe economic strain.
The urban-rural divide in inflation rates underscores the uneven impact of price increases. Urban areas, where wages are often higher but living costs more pronounced, recorded a 26.12% year-on-year inflation rate, significantly outpacing rural areas at 20.89%.
This disparity reflects the heavier burden on city dwellers, who face steeper prices for housing, transportation, and processed foods. However, rural communities are not spared, as rising costs of farm inputs, transportation, and energy trickle down into local markets, pushing up the prices of even basic staples like garri, rice, and plantain flour.
A closer look at state-level data reveals alarming disparities. Kaduna, Osun, and Kebbi emerged as the worst-hit states, with inflation rates exceeding 30%, driven by a combination of supply chain disruptions, insecurity affecting agricultural output, and localized demand pressures.
In contrast, Akwa Ibom and Bayelsa recorded the lowest inflation rates, though still in double digits, suggesting that regional economic conditions, possibly influenced by better food supply stability or lower transportation costs, play a critical role in moderating price increases.
Beyond food, core inflation—which excludes volatile farm produce and energy prices—rose to 24.43%, indicating that inflationary pressures are now deeply embedded in the broader economy.
The sharp reversal in energy prices, which surged by 9.21% in March after a slight decline in February, has compounded the problem, increasing transportation and production costs that inevitably feed into final consumer prices. Services inflation, though rising more moderately at 3.44%, still reflects the broader trend of rising costs in healthcare, education, and hospitality, further eroding disposable incomes.
The NBS’s hint at a forthcoming price monitoring initiative suggests that authorities recognise the limitations of current data collection methods in capturing real-time price movements.
The March inflation figures paint a troubling picture of an economy where price stability remains elusive. With food prices leading the charge and secondary effects rippling through energy and services, the pressure on households and businesses continues to mount. Without decisive interventions to boost agricultural productivity, stabilize the exchange rate, and curb speculative pricing, Nigeria’s inflation trajectory may remain on an upward climb, leaving millions more vulnerable to economic hardship in the months ahead.
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