Nigeria’s official statistics agency has announced plans to revise the way inflation is calculated and reported after an expected technical distortion is set to trigger a sharp but misleading rise in December inflation figures.
Officials from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN) confirmed that data due next week is likely to show an artificial surge in headline inflation, driven not by real price increases but by a seasonal quirk in how consumer prices are weighted at the end of the year.
Economists familiar with the data said the statistical effect could temporarily push inflation to more than double its October level, potentially alarming financial markets and policymakers despite little change in the actual cost of goods and services.
The distortion arises from the way price weights are applied during certain months in the inflation calculation, a process that can exaggerate movements late in the year. Bloomberg reported that this anomaly is expected to inflate December’s figure well beyond underlying price pressures.
To prevent confusion, Nigerian authorities say they will publish revised inflation data and provide clearer explanations of how seasonal adjustments and weightings affect the headline number. The move is intended to preserve the credibility of Nigeria’s economic statistics at a time when investors and policymakers are closely monitoring price stability.
Analysts say the decision reflects growing concern that misinterpreted data could disrupt markets or complicate policy decisions, especially as Africa’s largest economy grapples with stubborn inflation while trying to support growth.
The revised methodology is expected to play a role in shaping expectations ahead of the Central Bank of Nigeria’s next monetary policy meeting, where interest rates will be set based on inflation trends.
