CPI rebasing resets inflation measurement

In 2025, the National Bureau of Statistics (NBS) implemented a comprehensive rebasing of Nigeria's Consumer Price Index, updating the reference period and consumption basket used to measure inflation. This technical adjustment replaced the previous base year with more recent data reflecting current Nigerian spending patterns across urban and rural areas. The rebasing process involved surveying household expenditures to capture changes in what Nigerians actually buy, from food items to digital services that weren't prominent in earlier measurements.

The rebasing became necessary because Nigeria's previous CPI methodology had grown outdated, failing to accurately reflect modern consumption habits and price movements. Economic shifts following the COVID-19 pandemic, currency devaluation, and changing consumer preferences—including increased spending on technology and services—meant the old basket no longer represented typical Nigerian households. International best practices recommend regular CPI rebasing every five to ten years, and Nigeria's update aligned with global statistical standards while addressing specific local economic realities.