The latest data from the National Bureau of Statistics (NBS) shows that Nigeria’s Consumer Price Index (CPI), which measures the rate of change in prices of goods and commodities, rose to 29.90 percent in January. This marks an increase from 28.92 percent in the preceding month and reflects a significant year-on-year headline inflation rate of 8.08 percent higher compared to January 2023.
The report indicates that food inflation increased by 11.10 percent year-on-year to 35.41 percent, attributed to rises in prices of various food items such as bread, cereals, potatoes, yam, and other tubers, among others. Core inflation, which excludes volatile agricultural products and energy prices, also rose by 4.71 percent to 23.59 percent year-on-year.
Urban inflation increased by 9.40 percent to 31.95 percent year-on-year, while rural inflation rose by 6.97 percent to 28.10 percent year-on-year. At the state level, Kogi, Oyo, and Akwa Ibom recorded the highest inflation rates, while Borno, Taraba, and Benue recorded the slowest rise in headline inflation.
Food inflation was highest in Kogi, Kwara, and Rivers, while Bauchi, Adamawa, and Kano recorded the slowest rise. Month-on-month, Ondo, Osun, and Edo recorded the highest food inflation rates, while Bayelsa, Yobe, and Ogun recorded the slowest rise.
The Centre for the Promotion of Private Enterprise (CPPE) has called on the government to implement measures to mitigate the negative effects of inflation on manufacturers and operators in the real sector. CPPE emphasized that inflation exacerbates poverty and deteriorates citizens’ welfare, especially with food inflation reaching 35.4 percent in January.
The group highlighted various drivers of inflation, including exchange rate depreciation, surging transportation costs, logistics challenges, forex market illiquidity, and insecurity in farming communities. It urged the government to review tariff policies, grant concessionary import duty on intermediate products for industries, and prioritize fixing power, logistics, and forex issues to stabilize the economy and foster recovery.