Nigeria’s inflation rate eased to 18.02 percent in September 2025, according to data released by the National Bureau of Statistics (NBS).
This represents a significant decline from the 20.12 percent recorded in August, marking the sixth consecutive month of decreasing inflation.
The September figures reflect the first time in three years that Nigeria’s inflation rate has fallen below 20 percent, signaling a positive shift in the country’s economic landscape.
Food inflation, which makes up a large portion of the consumer basket, dropped sharply to 16.87 percent in September from 21.87 percent in August.
This reduction is attributed to improved food supply conditions and seasonal harvests that have eased pressure on prices for staple goods such as maize, beans, garri, and fresh vegetables.
Core inflation, which excludes volatile food and energy prices, stood at 19.53 percent year-on-year in September, down from 27.43 percent in the same month last year.
On a month-on-month basis, inflation slowed to 0.72 percent in September, compared to 0.74 percent in August.
Experts note that the easing inflation is also linked to relative stability in the foreign exchange market, which has helped moderate the cost of imported goods. Additionally, moderation in energy prices contributed to the overall downward trend.
The Central Bank of Nigeria (CBN) has responded to this improvement by reducing interest rates for the first time since 2020, aiming to sustain disinflationary momentum while supporting economic growth. The monetary authority remains cautious, citing ongoing challenges such as subdued consumer demand and fiscal pressures.
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The decline in inflation comes amid broader economic reforms, including the removal of fuel subsidies and efforts to unify the exchange rate, which are expected to further stabilize prices in the coming months.
The NBS data will be closely monitored by policymakers and investors as Nigeria works towards achieving a single-digit inflation target and fostering a more stable macroeconomic environment.
