Nigeria’s inflation accelerated in March, reversing the short-term reduction seen in February, as festive spending throughout Eid al-Fitr, and renewed foreign money depreciation lifted costs throughout the board.

Headline inflation rose to 24.2%, based on the Nationwide Bureau of Statistics (NBS), up from 23.18% in February. Meals inflation declined to 21.79% in comparison with final month, whereas core inflation—excluding meals and power—stood at 24.43%, reflecting the broad-based affect of import price pass-through and utility worth changes.

Analysts say inflationary pressures in March have been fueled primarily by seasonal meals demand, FX volatility, and better telecom and logistics bills.

“Seasonal farming constraints throughout Ramadan, heightened demand over Eid, and the depreciation of the naira all contributed to elevated costs,” mentioned analysts at Meristem, a Nigerian monetary companies firm that gives wealth administration, stockbroking, asset administration, and trustee companies.

The naira weakened sharply in late February and early March, buying and selling above ₦1,400/$ in parallel markets and eroding earlier features seen after the CBN’s FX reforms in Q1. Importers and producers handed rising enter prices onto shoppers, notably in city facilities.

Samuel Oyekanmi, an analyst at Norrenberger, mentioned March’s figures replicate “a stability between rebasing-related base results and protracted price pressures from the naira and gasoline.”

Analysts count on inflation to stay sticky within the close to time period, with potential upside dangers from electrical energy tariff changes and geopolitical disruptions to international provide chains.

“Commerce tensions, particularly between the U.S. and China, may disrupt enter provide and escalate imported inflation,” mentioned Olajide Oyadeyi, an economist at Econoday Inc. “This might worsen worth stability for Nigerian producers closely reliant on overseas items.”

Meristem initiatives inflation to remain inside the 20–24% band by way of mid-year, citing anticipated stability in power costs and a slower tempo of naira depreciation. Nonetheless, the agency warns that “additional FX volatility and commodity shocks may problem this outlook.”

The Financial Coverage Committee (MPC) is anticipated to satisfy subsequent month. With inflation now rising once more and the naira underneath renewed strain, markets anticipate the CBN could resume tightening or introduce liquidity administration measures to help the foreign money and comprise inflation expectations.