Imo State has emerged as the costliest state to dwell in Nigeria following the rebasing of the Shopper Value Index (CPI) by the Nationwide Bureau of Statistics (NBS).
The event marks a big shift in Nigeria’s inflation rankings, as Bauchi, which held the highest spot for seven consecutive months, has been dethroned.
The change comes after the NBS up to date its methodology, adjusting the bottom 12 months from 2009 to 2024, revising the weighting construction, and increasing the buyer basket to higher mirror family spending patterns.
A significant upset in inflation rankings
- For months, Bauchi had led Nigeria’s inflation charts, holding the very best value of dwelling since Could 2024 after unseating Kogi. Nevertheless, with the newest rebasing, the all-items inflation fee in Bauchi is not the very best, with Imo now taking the lead at 17.77 per cent in January 2025. Earlier than the rebasing, Imo was ranked thirty fifth amongst Nigerian states when it comes to dwelling prices, making its sudden rise to the highest one of the vital drastic shifts within the rating.
- In keeping with the newest knowledge from the NBS, Imo’s meals inflation stood at 16.80 per cent, additional emphasizing the steep value of meals gadgets within the state. As compared, Bauchi, which as soon as recorded the very best inflation figures, not ranks among the many most costly states because of the revised methodology.
- For Bauchi, the all-item inflation fee dropped from 44.06% in December 2025 to 10.06% whereas meals inflation moved from 39.37% to 12.79%, with the state being the seventeenth most costly state within the nation by January 2025.
Seemingly components behind Imo’s rise
The NBS’s rebasing train integrated new family consumption knowledge and a broader number of items and providers into the CPI calculation.
- The earlier methodology closely weighted meals inflation, which contributed to Bauchi’s extended keep on the prime of the rankings.
- Nevertheless, the rebasing redistributed weights throughout sectors, lowering the emphasis on meals whereas incorporating housing, utilities, and providers, which have change into main value drivers in urbanized states like Imo.
- Imo’s new rating is basically because of rising housing and transportation prices, in addition to larger costs for important items and providers.
What CPI rebasing means for inflation measurement
The NBS’s resolution to rebase the CPI is geared toward bettering the accuracy of inflation monitoring. The brand new methodology displays altering consumption patterns and incorporates extra up-to-date value knowledge.
- Earlier than the rebasing, meals accounted for over 50 per cent of the CPI calculation, however with the revised construction, the affect of meals costs has been lowered to 40 per cent. The up to date CPI additionally consists of extra product varieties, rising from 740 to 934 gadgets, and now tracks expenditure on providers extra comprehensively.
- Moreover, the change from the Dutot index to the Jevon index in computing value actions has made the inflation measure extra reflective of actual value shifts. The brand new construction higher accounts for value variations between product classes and ensures that Nigeria’s inflation knowledge aligns with world greatest practices.
- Whereas the rebasing has led to a pointy decline in reported inflation figures, the underlying cost-of-living challenges stay for Nigerian households. Residents of Imo, Ebonyi, and different extremely ranked states nonetheless face excessive costs for important items and providers, regardless that the reported inflation charges at the moment are decrease than earlier than.
The rebased CPI has, nonetheless, supplied a extra correct illustration of inflationary pressures, shifting the main focus from simply meals costs to a broader vary of bills.
What it is best to know
Nigeria’s headline inflation fee dropped to 24.48% year-on-year in January 2025, following the rebasing of the Shopper Value Index (CPI), in response to knowledge launched by the Nationwide Bureau of Statistics (NBS).
- There’s a decline within the basic value degree of products and providers in comparison with 34.80% in December 2024, which was calculated utilizing the earlier methodology.
- In keeping with the newest NBS report, city inflation stood at 26.09%, whereas rural inflation was recorded at 22.15%.
The rebased meals inflation index stood at 26.08% year-on-year in January 2025, indicating a decline from the 39.84% recorded in December 2024 underneath the previous methodology.