World Bank Says Nigeria’s Inflation Remains Stubbornly High, Despite Rebasing

Despite recent adjustments to how inflation is measured, the World Bank has warned that Nigeria’s inflation remains persistently high, raising concerns about the country’s economic stability and household welfare.

The global lender noted that while the rebasing of inflation figures by the National Bureau of Statistics has helped present a clearer picture of price trends, it has not significantly reduced the underlying pressure on prices.

According to the World Bank, “inflation remains high,” stressing that the statistical adjustment does not change the real cost-of-living challenges faced by Nigerians.

The rebasing exercise, which involved updating the base year used in calculating the Consumer Price Index, was aimed at improving accuracy and reflecting current consumption patterns. However, analysts say it also had the effect of moderating headline figures without necessarily easing actual price pressures.

Recent data shows that inflation has eased to around 15 per cent in early 2026, following a steady decline from much higher levels recorded in 2024.

Still, the World Bank cautioned that price levels remain elevated, driven largely by structural factors such as food costs, exchange rate volatility, and energy prices.

“Higher inflation continues to squeeze incomes,” the institution warned, noting that it poses a risk to poverty reduction efforts and economic recovery.

The bank also emphasized the need for sustained reforms, including tight monetary policy and improved fiscal discipline, to bring inflation under control.

While Nigeria’s economy is showing signs of resilience and modest growth, the persistence of inflation underscores the fragile balance between reform gains and everyday economic realities for millions of citizens.