The National Bureau of Statistics (NBS) has reported a decrease in Nigeria’s inflation rate, which fell to 23.18% in February from 24.48% in January.

The announcement was made in the February 2025 Consumer Price Index (CPI) released by the NBS on Monday.

According to the bureau, the headline inflation rate in February increased slightly by “1.30% points when compared to the January 2025 headline inflation rate.”

The NBS stated:

“In February 2025, the Headline inflation rate eased to 23.18% relative to the January 2025 headline inflation rate of 24.48%.”

“Looking at the movement, the February 2025 Headline inflation rate showed a decrease of 1.30% compared to the January 2025 Headline inflation rate.”

On a year-on-year basis, the headline inflation rate was 8.52% lower than the 31.70% recorded in February 2024.

The NBS further noted:

“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.”

Additionally, the month-on-month inflation rate for February 2025 was recorded at 2.04%.

More to come…

The cost of Premium Motor Spirit (petrol) could experience a further decline if crude oil prices continue to drop.

This trend will be reinforced if the naira maintains its stability against the dollar in the foreign exchange market.

Oil prices dropped by approximately two percent, reaching a 12-week low this week, following reports that OPEC+ plans to proceed with a scheduled oil output increase in April.

Brent futures decreased by $1.19, or 1.6 percent, settling at $71.62 a barrel, while the United States West Texas Intermediate crude fell by $1.39, or two percent, to settle at $68.37.

Reuters reported that these were the lowest closing prices for Brent since December 6, and for WTI since December 9.

It was also reported that the Organisation of the Petroleum Exporting Countries and its allies, such as Russia, known as OPEC+, decided to continue with the planned oil output increase in April.

Experts in the Nigerian downstream oil sector have stated that the cost of refined petroleum products is primarily determined by crude oil prices and the exchange rate.

Last week, Dangote refinery reduced its ex-depot PMS price from N890 per litre to N825.

The Nigerian National Petroleum Company Limited (NNPCL) followed Dangote’s move, reducing its price to match, leading to what many are calling a price war.

Economist Paul Alaje believes that the petrol price reduction is sustainable and should fall below N700 per litre based on current market conditions.

While the price reduction is feasible, Alaje noted that the main risk is if crude oil prices increase due to a global crisis.

“It is sustainable to reduce petrol prices to N700 based on today’s reality of the exchange rate. The challenge we may have is a global crisis that makes the price of crude oil go up. If that happens, we are going to see the difference. But for now, we are seeing relative stability,” Alaje said on Channels Television.

He added, “As of today, our computation reveals that PMS should be around N795 to N820 per litre.”

Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, has insisted that petrol prices will continue to fluctuate based on changes in the foreign exchange rates and global crude oil prices.

Nonetheless, the drop in crude oil prices is benefiting average Nigerians by making fuel more affordable. The current price is below the $74 per barrel projected by the Federal Government in the 2025 budget.

The Nigerian National Petroleum Company (NNPC) Limited has lowered the retail price of premium motor spirit (PMS), commonly known as petrol, to N880 per litre at its filling stations in Abuja.

Previously, NNPC sold petrol at N965 per litre in Abuja before the reduction.

According to TheCable, it was observed that the price decreased by N85 per litre at the Federal Housing, Kubwa NNPC retail outlet.

A pump attendant at the Kubwa station confirmed to TheCable that the price cut took effect on Monday afternoon.

Similarly, the NNPC retail branch at Irawo, Ransco bus stop, Ikorodu Road displayed a price of N860 per litre, while the Idimu Road outlet also sold petrol at N860 per litre.

On February 13, NNPC had earlier reduced the pump price only in Lagos, from N960 per litre to N945 per litre.

The latest price reduction follows less than a week after Dangote Petroleum Refinery cut its ex-depot price to N825 — marking the second reduction in February.

Earlier in February, Dangote refinery had slashed petrol prices from N950 per litre to N890 per litre.

With the new adjustment, the refinery has cut the ex-depot price by N125 from N950 per litre recorded in January.

The price drop was also observed at MRS filling stations, selling at N860 per litre, and Heyden stations, offering petrol at N865 per litre in Lagos.