Energy prices, including petrol and electricity, topped inflation concerns in April 2025, cited by 91% of respondents. Exchange rate stability and rising transportation costs were also major factors.
NAIRAMETRICS
Exchange rate, transportation cost, and inflation rate have been listed among the top five drivers of inflation perception by Nigerian businesses and households in the month of April 2025.
The latest Inflation Expectation Survey Report from the Central Bank of Nigeria (CBN) reveals that businesses and households identified exchange rates, transportation costs, energy prices, interest rates, and security concerns as the top five factors influencing inflation perception in April 2025.
Based on the latest CBN Inflation Expectation Survey Report, the following are the top five drivers of inflation in April 2025.
1. Energy (PMS, diesel, electricity)
The report highlights that energy prices, including petrol, diesel, and electricity, had the greatest impact on inflation perception, with 91% of respondents citing it as a major factor.
Throughout April, petrol prices fluctuated between N870 and N920 per liter, further compounding cost pressures.
Additionally, electricity tariffs remained a significant concern, with Band A customers paying N209 per kilowatt-hour (kWh) for a minimum of 20 hours of daily power supply, while Band B customers (16–20 hours of electricity) faced rates of N63 per kWh. These rising costs continue to strain household budgets and business operations.
2. Exchange rate
The exchange rate, which stabilized between N1,589/$1 and N1,605/$1, was the second most influential factor, affecting 87.8% of respondents’ inflation perception.
Despite relative stability in both official and unofficial markets, businesses and consumers remained highly sensitive to exchange rate fluctuations and their impact on import prices and overall inflation.
3. Transportation (road, flight, water, rail)
Transportation costs, covering road, flight, water, and rail travel, ranked third, with 86.7% of respondents citing it as a significant contributor to inflation perception.