Price explosion: Nigeria’s inflation soars to 24.23% in March

Nigeria’s inflation crisis deepened in March 2025 as the headline inflation rate surged to 24.23%, up from 23.18% recorded in February.

This reflects a 1.05% increase that further squeezes households battling with soaring living costs.

The latest figures from the National Bureau of Statistics (NBS) paint a grim picture for Africa’s largest economy, showing sharp price increases across both urban and rural areas, with food items leading the inflationary surge. Recipe book

On a month-on-month basis, inflation climbed by 3.90% in March—an alarming 1.85% jump from the 2.04% recorded in February—signalling a quicker pace in the rise of average prices within the space of just 30 days.

Urban dwellers bore the brunt of the pressure, with urban inflation hitting 26.12% year-on-year. Month-on-month, urban inflation rose by 3.96%, an increase of 1.56% over February’s 2.40%, as city residents continued to grapple with skyrocketing costs of basic goods and services.

In rural areas, the situation was also dire. Year-on-year rural inflation stood at 20.89% in March, while month-on-month inflation soared to 3.73%—a 2.57% leap from February’s 1.16%. This indicates a sharp rise in the cost of living even in less urbanised parts of the country.

Food prices, a critical inflation component affecting millions of Nigerians, climbed by 21.79% year-on-year. The month-on-month increase stood at 2.18%, 0.50% higher than February’s 1.67%.

Key drivers of this surge include price hikes in staple and widely consumed items such as fresh ginger, yellow garri, Ofada rice, natural honey, crabs, potatoes, plantain flour, periwinkle, and fresh pepper.

Economic analysts warn that the persistent rise in inflation could further erode purchasing power, deepen poverty levels, and complicate efforts by the Central Bank of Nigeria to stabilise the naira and stimulate growth.

With inflationary pressures showing no signs of abating, economists are calling for urgent policy interventions, including measures to stabilise food supply chains, bolster agricultural productivity, and curb the volatility in foreign exchange markets that continues to fuel import-driven inflation.