February leaves Nigeria’s annual headline inflation (NGCPIY=ECI) with a decent output as it eases to 23.18% the National Bureau of Statistics said on Monday.

Inflation had gone up to its highest in 28 years in 2024 following the removal of costly subsidies and devaluation of the naira by President Bola Tinubu.

The current rate of inflation by the bureau shows a 31.7% drop from a year earlier and 1.3% percentage points from January.

Food inflation, the main component of the headline inflation rate, fell from 26.08% the month before to 23.51% year on year (NGFINF=ECI), in February.

The updated Consumer Price Index is represented in the new rate as the agency had inserted changes in consumption patterns a month prior.

The Crypto Situation in Nigeria Due to High Inflation

The lower inflation percentage of February does not do much to the economy as currency devaluation and other economic woes continue to plague citizens. The consequences of the fuel subsidy removal and integration of exchange rates continue to linger.

Citizens in their millions are now turning towards the use of cryptocurrency to evade hardship. More so, wealth protection from inflation appears to be a major driver in the crypto environment of Nigeria.

The discovery of cryptocurrency opens more doors to those who need to explore new income routes overseas. Also, digital assets have provided an alternative for those who fear improbable banking regulations.

Digital asset transactions in Nigeria have grown significantly over the past year as seen in many reports from blockchain analytics companies. The general uncertainty around the use of conventional financial institutions matches the growing demand for alternative solutions.

As citizens navigate the new reality, they are beginning to appreciate what works best in the business, trade and overall buying and selling scenarios.