The cost of living in Nigeria is rising rapidly, and the inflation rate has risen from 23.18% in February to 24.23% in March 2025. Nowadays, everyday items such as food items and essential goods are becoming increasingly expensive for ordinary Nigerians.
The surge in prices is mainly due to the rising prices of staple food items such as garri rice and cooking oil. The rising prices of food items and non-alcoholic beverages have affected millions of families in Nigeria to a great extent, mainly due to the rapid increase in the inflation rate. The removal of fuel subsidy and the steep fall in the naira have significantly increased inflation in Nigeria.
Transportation costs across the country have increased significantly following the discontinuation of government fuel subsidy, as prices of goods and services across various sectors have been affected. As the naira continues to weaken, imported products are also becoming more expensive, putting a lot of pressure on already strained household budgets.
The government recently changed the base year for calculating inflation from 2009 to 2024, which has been welcomed with much enthusiasm. The change did reduce the inflation rate somewhat in January, but now the trend is again moving upwards rapidly. The Central Bank of Nigeria has maintained a high interest rate of 27.5% to curb the rapidly rising inflation. The move has made borrowing expensive, but it is also aimed at reducing spending to some extent and bringing prices under control in some way.
Daily life for various people in Nigeria has become remarkably difficult amid these changes that are swirling turbulently around them. Salaries are not increasing fast enough and many families are cutting down on basic necessities, barely able to make ends meet amid rising costs. Small businesses especially those selling food and ride-hailing services are struggling to keep rates reasonable while remaining modestly afloat.
Experts believe that the government must somehow balance macroeconomic reforms with helping poor people. Initiatives to support poor families and encourage agricultural business may ease inflationary pressures to some extent in the coming months.
