NBS Updates Inflation Metrics to Match Current Consumer Habits

Nigeria’s inflation data is now being measured using updated consumption patterns following a comprehensive rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS).

The Statistician-General explained that the overhaul was necessary because the previous CPI basket was based on spending habits from 2009, which no longer reflect how Nigerians live or spend today. The rebasing exercise, completed in 2025 with 2024 as the new base year, marks the first update in 15 years.

A nationwide household expenditure survey conducted across all states and the Federal Capital Territory revealed that Nigerians no longer spend on 201 items previously included in the inflation basket. These items were removed strictly based on survey evidence showing no recorded expenditure over a 12-month period.

Examples of discontinued items include outdated electronics such as black-and-white televisions and older mobile phone models.

At the same time, 404 new items reflecting current consumption trends were added, expanding the CPI basket to 934 products from about 740 previously. The updated basket is designed to better capture spending on modern goods, services, and technologies.

NBS acknowledged technical challenges associated with adopting December 2024 as the new reference period, noting that base effects could distort headline inflation figures if not properly adjusted. Measures have been taken to normalise the data in line with international best practices.

Economic stakeholders welcomed the update, stressing that accurate inflation data is essential for effective policymaking and investor confidence as Nigeria continues its reform and consolidation efforts.