Nigeria’s inflation rate eased for the second straight month in February, signaling a potential turning point in the country’s fight against rising prices.

According to the latest report from the National Bureau of Statistics (NBS) released on Monday, inflation dropped to 23.18% in February 2025, down from 24.48% in January. This represents a 1.30% decline within the month.

On a year-on-year basis, inflation saw a significant drop of 8.52 percentage points compared to the 31.70% recorded in February 2024.

The NBS highlighted that while the calculation was based on a different reference year, the trend indicates a notable slowdown in price increases.

The month-on-month inflation rate stood at 2.04%, reflecting the pace at which prices rose in February.

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 per cent.”

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

“On a year-on-year basis, the Headline inflation rate was 8.52 per cent lower than the rate recorded in February 2024 (31.70 per cent). 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.”

“Furthermore, on a month-on-month basis, the Headline inflation rate in February 2025 stood at 2.04 per cent.”

The report suggests that while prices are still rising, the pace of increase is slowing, which could bring some relief to households and businesses struggling with high costs.

The decline in inflation follows measures by the Central Bank of Nigeria (CBN) aimed at stabilizing the economy.

The CBN has been tightening monetary policy and working to stabilize the exchange rate to curb inflationary pressures.

In 2024, inflation soared to record levels, fueled by a weakening naira, rising transportation costs, and supply chain disruptions.

The recent moderation in price growth offers a glimmer of hope that these pressures may be easing.

ROAMAN NEWS

Despite Nigeria’s increased refining capacity, independent oil marketers continue to import refined fuel products.

Over a five-month period, these marketers brought in 6.38 billion liters of petrol and diesel, spending over ₦6 trillion—a trend that puts additional pressure on the country’s foreign exchange reserves.

According to recent port records, between October 2024 and February 2025, importers secured 5.01 billion liters of petrol and 1.37 billion liters of diesel, relying on scarce foreign exchange resources.

This influx of imported fuel persists even as domestic refining capacity is projected to meet 50 million liters of daily demand, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Imported products arrived at four key seaports:

• Lagos (Apapa & Tin Can): 3.86 billion liters
• Port Harcourt: 5.63 billion liters
• Calabar: 1.39 billion liters
• Warri: 389.52 million liters

Despite rising import figures, the Nigerian National Petroleum Corporation Limited (NNPCL) has asserted that it has not imported a single liter of fuel in 2025, instead relying on local sources.

Documents detailing Nigeria’s fuel importers list multiple companies, including BOVAS, Eternal Oil, AA Rano, Matrix Energy, Rainoil, and AYM Shafa, alongside smaller independent marketers.

These companies have continued importing fuel despite the expansion of Dangote Refinery and other domestic refineries.

Many industry stakeholders oppose continued fuel imports. Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), emphasized the need to prioritize local refining:

“We have collectively, as stakeholders, decided that we must be pro-local content. We must do everything possible to encourage local production and local consumption. I recall that all the associations took that decision under the leadership of NNPC to stop importation. So, whoever is importing at this time may not be doing that with the CBN’s dollar approval because CBN doesn’t have $600m now to give anybody to import petroleum products.”

Gillis-Harry also noted that expanding refineries—Dangote, Port Harcourt, Edo, Niger Delta, and Watersmith—would strengthen Nigeria’s energy sector and attract foreign investment.

In response to price competition and global oil price fluctuations, NNPC reduced its petrol pump price to ₦860 per liter, down from ₦920 per liter. This move aims to provide relief to Nigerians struggling with high fuel costs.

As local refining capacity expands and the price battle continues, the Nigerian fuel market is at a turning point. Will independent marketers continue to rely on imports, or will local production finally take center stage?

ROAMAN NEWS