By Okafor Joseph Afam, January 15, 2025

Nigeria’s inflation rate climbed to 34.80% in December 2024, reflecting a marginal increase from the 33.60% recorded in November. This was disclosed by the National Bureau of Statistics (NBS) in its latest Consumer Price Index (CPI) report, released on Wednesday.

The report highlights the persistent economic pressures facing Nigerians, with the headline inflation rate on a month-on-month basis standing at 2.44% in December. The food inflation rate, a critical measure of affordability, soared to 39.84% year-on-year.

“In December 2024, the Headline inflation rate was 34.80% from 34.60% in November 2024. Month-on-Month, the Headline inflation rate in December 2024 was 2.44%,” the NBS wrote on X (formerly Twitter).

Food Inflation Remains a Challenge
The spike in food inflation is a significant concern for households across the country. Rising costs of staples and essential commodities continue to strain family budgets, leaving many struggling to make ends meet.

Tinubu’s New Year Pledge to Combat Inflation
In his 2025 New Year address, President Bola Ahmed Tinubu acknowledged the economic challenges and outlined his administration’s ambitious plan to curb inflation. He pledged to reduce the inflation rate from its current high of 34.6% to 15% within the year.

“In 2025, our government is committed to intensifying efforts to lower these costs by boosting food production and promoting local manufacturing of essential drugs and other medical supplies,” Tinubu said.

He further emphasized his administration’s resolve to consolidate and increase access to credit for individuals and key sectors of the economy. “To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises,” he added.

Economic Experts’ Take
While the government’s ambitious target has been welcomed by some as a bold step, economic experts have cautioned that achieving such a drastic reduction in inflation will require significant structural reforms and strict fiscal discipline.

Nigeria’s inflation has been driven by various factors, including the removal of fuel subsidies, foreign exchange volatility, and insecurity affecting food production. Addressing these challenges will be key to achieving sustainable economic stability.

The months ahead will reveal whether President Tinubu’s strategies can deliver on his promises and provide the much-needed relief to Nigerians grappling with soaring costs of living.