The National Bureau of Statistics (NBS) is set to release its much-anticipated rebased Consumer Price Index (CPI) report today, revealing a significant drop in inflation to 24.48% for January 2025. This marks a notable decrease from the pre-rebased rate of 34.80% recorded in December 2024.
The rebasing process, which involved updating the weight and price reference periods, introduced enhanced methodologies to improve the accuracy of inflation measurements. The base year was moved from 2009 to 2024, with an expanded coverage of 934 product varieties, up from 740 previously.
According to sources and independent surveys, the rebased CPI now better reflects current economic realities. Key changes include a shift to the Classification of Individual Consumption According to Purpose (COICOP) 2018 version, an improved digital data collection system, and updated expenditure categories.
Financial analysts and economists have welcomed the rebasing, predicting that it will lead to a more accurate assessment of inflation trends. Independent reports had already indicated a slowdown in inflation, with the International Monetary Fund (IMF) forecasting a decline to 23% in 2025 and further reductions in subsequent years.
The Financial Derivatives Company (FDC), led by Bismarck Rewane, also reported a drop in headline inflation from 34.80% to 33.35% using the old methodology. Analysts credit the declining inflation to the strengthening of the naira in the foreign exchange market and lower fuel prices.
The NBS emphasized that the CPI rebasing aligns Nigeria’s inflation tracking system with global best practices, ensuring more precise economic analysis for policymakers, businesses, and households.
