Regional Disparities in Inflation Rates Across Nigeria
Severe inflationary conditions have been observed in various states, including Bayelsa, Sokoto, and Bauchi. These regions have reported some of the highest rates of inflation, underlining significant economic disparities within the country.
Economic Indicators Point to Rising Inflation Threats
The Consumer Price Index (CPI) for March has jumped to 15.38%, increasing from 15.06% in February and markedly lower than the 27.35% recorded in March 2025, as reported by the National Bureau of Statistics (NBS). This marks the first instance of rising inflation after a consistent decline observed over the past 13 months.
Impact of Global Events on Local Inflation Trends
This uptick in inflation can be linked to global disruptions stemming from the ongoing conflict between the US, Israel, and Iran, which has contributed to higher energy prices and other related economic challenges.
Concerns Over Inflation Resurgence Amid Disinflationary Progress
Dr. Muda Yusuf, Chief Executive of the Center for the Promotion of Private Enterprise (CPPE), expressed concerns that this rise in inflation signifies a troubling resurgence of inflationary pressures, particularly evident in month-on-month comparisons. He explained that while the country had seen disinflationary trends, they are now jeopardized by escalating costs in categories such as energy, food, and transport.
Detailed CPI Insights for March Reveal Inflation Trajectories
According to the March CPI report, the month-on-month index rose to 4.18%, a significant increase from 2.01% in February. Year-on-year food inflation stood at 14.31%, in stark contrast to 25.22% in March 2025. Month-on-month, however, the food index showed a slight moderation at 4.17%, compared to the previous month’s 4.69%.
State-Level Inflation Rates Highlight Economic Disparities
At the state level, Bayelsa (27.37%), Sokoto (26.03%), and Bauchi (23.67%) reported the highest year-on-year inflation rates. In contrast, Osun (5.25%), Kano (9.85%), and Kaduna (10.38%) reported the lowest. Month-on-month increases were most significant in Zamfara (10.77%), Bauchi (9.37%), and Sokoto (9.05%), whereas Lagos (1.54%), Akwa Ibom (1.80%), and Rivers (1.89%) showed much lower rates of growth.
Policy Implications and Recommendations to Combat Inflation
Dr. Yusuf emphasized that the persistent rise in inflation, particularly driven by energy prices, necessitates urgent policy interventions. He called for a shift from narrow financial strategies to broader frameworks that tackle structural issues in the energy, food, and transport sectors. The recommendation is clear: decisive action is essential to avert reversing the fragile stability achieved thus far, as households and businesses continue to wrestle with substantial cost pressures.
Long-Term Solutions Needed for Sustainable Economic Recovery
As inflationary pressures become increasingly embedded in the economy, the CPPE urges that enhancing agricultural productivity is paramount to sustainably reduce food inflation, rather than relying on imports. Furthermore, establishing a more efficient public transport system could alleviate inflationary pressures and enhance overall economic welfare. The recent rise in inflation should not be seen as an impetus for stricter monetary policy, Dr. Yusuf cautioned, but rather as an acknowledgment of the ongoing cost-push dynamics that remain operational in Nigeria.
