Nigeria’s inflation drops to 23.18%, debt service declines to $276m
The National Bureau of Statistics (NBS), in its latest report released Monday, said Nigeria’s inflation rate eased for the second consecutive month in February, raising hopes that price pressures may have peaked and could continue southwards.
Nigeria’s headline inflation rate dropped to 23.18 per cent in February 2025 from 24.48 per cent recorded in January, reflecting a 1.30 per cent decrease within the month.
On a year-on-year basis, the inflation rate dropped by 8.52 percentage points from 31.70 per cent recorded in February 2024.
Also, figures from the Central Bank of Nigeria (CBN) have shown that Nigeria’s total debt service payments dropped to $276 million in February 2025, from $540 million recorded in January this year.
The NBS noted that while the inflation figures were calculated using a different base year, the decline suggests a significant slowdown in price increases compared to the same period last year.
The month-on-month inflation rate for February stood at 2.04 per cent, indicating the rate at which prices increased within the month.
The NBS noted: “In February 2025, the headline inflation rate eased to 23.18% relative to the January 2025 headline inflation rate of 24.48 per cent.
“Looking at the movement, the February 2025 Headline inflation rate showed a decrease of 1.30 per cent compared to the January 2025 Headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 8.52 per cent lower than the rate recorded in February 2024 (31.70 per cent). This shows that the headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100.
“Furthermore, on a month-on-month basis, the Headline inflation rate in February 2025 stood at 2.04 per cent.”
While prices are still rising, the slowdown suggests a gradual easing of inflationary pressures in the economy.
…CBN on debt servicing
The drop in inflation comes amid efforts by the CBN to rein in price surges through monetary tightening and forex stabilisation policies.
Rising costs of goods and services, driven by currency depreciation, high transportation costs, and supply chain disruptions, had pushed inflation to record highs in 2024.
Nigeria’s total debt service payments dropped to $276 million in February 2025, from $540 million recorded in January this year, the CBN has said.
This is according to the Central Bank of Nigeria (CBN)’s latest data on external sector payments released recently showed that debt servicing payment declined by $264 million or 48.88 per cent
This decline comes despite the ongoing efforts by the federal government to restructure its debt portfolio, improve dollar liquidity, and ease pressure on the foreign exchange market.
The new figure indicates the increasing strain of debt obligations on Nigeria’s external reserves and overall fiscal sustainability.
According to data from CBN website, the debt service payments declined, while Letters of Credit (LCs) rose sharply, indicating increased financing of trade transactions.
The data obtained from CBN revealed that LCs issued in February 2025 totaled $95.6 million, a 48 per cent increase from $64.6 million in January 2025.
The rise in LCs suggests a recovery in import-related activities, particularly as businesses adjust to the fluctuating naira exchange rate and government policies aimed at stabilizing trade financing.
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