Nigeria’s inflation rate fell to 24.48% in January after a long-overdue rebasing of its price index.
The National Bureau of Statistics (NBS) announced the change on Tuesday, stating that inflation calculations now reflect updated consumption patterns.
Statistician-General Prince Adeyemi Adeniran emphasized that the new data does not indicate a sudden drop in prices but rather a refined measurement of inflation trends.
Before the rebasing, Nigeria’s December inflation rate stood at a staggering 34.80% year on year, highlighting the scale of statistical revision.
The reweighting of Nigeria’s Consumer Price Index (CPI) included shifting the base year from 2009 to 2024, a move aimed at enhancing economic accuracy.
“The price estimate from NBS will now be more reflective of real inflationary pressures within the economy,” Adeniran told reporters.
He noted that the rebasing process, which should occur every five years, had been delayed due to resource constraints.
The revision received technical support from the World Bank, the International Monetary Fund, and the Central Bank of Nigeria.
Razia Khan, Standard Chartered’s chief economist for Africa and the Middle East, said the revision could influence the central bank’s policy decisions.
Financial markets were surprised by the drastic impact of the rebasing, potentially opening the door for an interest rate cut this week.
Nigeria’s central bank hiked rates by 875 basis points last year to combat inflation driven by subsidy removals and currency devaluation.
