Following the release of new inflation data, experts are calling for the Central Bank of Nigeria (CBN) to reduce interest rates.
The National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation dropped to 24.48% in January 2025 from 34.80% in December 2024 after rebasing the Consumer Price Index (CPI).
Prince Adeyemi Adeniran, the Statistician-General, explained that the rebasing, shifting the base year from 2009 to 2024, aimed to better reflect inflationary pressures.
Despite the drop, experts argue that prices remain high. Professor Uche Uwaleke stated, “The drop in inflation could give the MPC an impetus to consider gradually lowering interest rates.”
Dr. Muda Yusuf from the Centre for Promotion of Private Enterprise cautioned, “A reduction in inflation figures doesn’t mean a reduction in price levels.”
Tunde Amolegbe of Arthur Stevens Asset Management emphasized that the rebasing offers a more accurate picture of the economy but called for the CBN to pause rate hikes, allowing for economic growth.
Dr. Chinyere Almona from the Lagos Chamber of Commerce and Industry noted that while the rebased CPI offers clearer data, “It does not automatically improve living standards,” urging the government to focus on tackling food inflation and infrastructure.
