The National Bureau of Statistics (NBS) has disclosed that alcoholic beverages, tobacco, and narcotics recorded the highest inflation rate at 14.80%, according to its latest rebased Consumer Price Index (CPI) report for January 2025.
In its graphical analysis, the NBS highlighted that restaurants and accommodation services followed closely with an inflation rate of 14.14%, while transport and clothing & footwear recorded 12.77% and 12.73%, respectively.
The rebased CPI, which now uses 2024 as the base year, revealed that Nigeria's headline inflation stood at 24.48% in January 2025, reflecting a sharp rise in the general price level of goods and services compared to the same period in 2024.
Rebasing and Consumer Spending Patterns
The updated CPI structure now covers 934 product varieties, categorized into 13 divisions under the 2018 Classification of Individual Consumption According to Purpose (COICOP).
Despite the structural changes, food and non-alcoholic beverages remain the highest-weighted category at 40%, although down from 51.8% in the previous base year of 2009.
Inflation rates across major categories include:
Food & Beverages: 10.64%
Personal Care & Miscellaneous Goods/Services: 12.04%
Furnishings & Household Equipment: 11.48%
Health: 9.42%
Housing, Water, Electricity, Gas & Other Fuels: 7.61%
Education: 4.88% (lowest inflation rate)
Insurance & Financial Services: 4.65%
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Urban vs. Rural Inflation Trends
The NBS also observed a clear urban-rural divide in inflation trends, with urban inflation at 26.09% compared to 22.15% in rural areas. The price surge was particularly pronounced in housing, transportation, and restaurant services in urban areas.
Digitization & Inflation Tracking
A key highlight of the rebasing exercise was the digitization of data collection, transitioning from paper-based surveys to computer-assisted personal interviewing (CAPI) devices. This shift enables real-time price tracking and verification, enhancing the accuracy of inflation measurement.
Imo State Emerges Most Expensive in Nigeria
Following the rebased CPI, Imo State has overtaken Bauchi as Nigeria's most expensive state to live in. Bauchi had previously held the top spot for seven consecutive months before the CPI update adjusted the weighting structure and expanded the consumer basket to better reflect household spending patterns.
Government's Response & Economic Policy Implications
The Statistician-General of the Federation, Prince Semiu Adeyemi, emphasized that rebasing the GDP and CPI is crucial for aligning economic data with real-time changes, ensuring effective policymaking and governance.
With inflationary pressures persisting, particularly in consumer essentials and urban sectors, economic stakeholders will closely monitor policy responses, regulatory adjustments, and fiscal strategies to stabilize prices and enhance affordability.
