- Inflation declines to 18.02%, reflecting moderation in food and energy prices and increased exchange rate stability.
- This disinflation trend signals improving macroeconomic fundamentals, supported by tighter monetary policy and structural reforms.
Nigeria’s inflation rate dropped again in September, offering relief to households and businesses. According to the National Bureau of Statistics (NBS), the Consumer Price Index (CPI) eased to 18.02 per cent from 20.12 per cent in August. This marks the third consecutive monthly decline, signalling progress in price stability.
Year-on-year, headline inflation fell sharply from 32.70 per cent in September 2024 to 14.68 per cent in 2025. Food inflation followed the same trend, declining to 16.87 per cent from 37.77 per cent a year earlier, helped by a better food supply and seasonal harvests.
The NBS attributed this drop to lower food and energy prices and steadier foreign exchange conditions. Month-on-month inflation also eased slightly to 0.72 per cent, down from 0.74 per cent in August.
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), described the development as a positive sign of macroeconomic recovery. However, he warned that the cost-of-living crisis remains severe, especially for low- and middle-income families.
Core inflation, which excludes volatile agricultural and energy products, also dropped to 19.53 per cent from 27.43 per cent a year earlier. Urban inflation eased to 17.50 per cent, while rural inflation fell to 18.26 per cent. Yusuf said this broad-based decline reflects better coordination between fiscal and monetary policies.
At the state level, Adamawa (23.69%), Katsina (23.53%), and Nasarawa (22.29%) posted the highest inflation figures. In contrast, Anambra (9.28%), Niger (11.79%), and Bauchi (12.36%) recorded the lowest.
Yusuf attributed the continued disinflation to improved food supply, stable exchange rates, and consistent macroeconomic policies. He urged the government to focus on welfare-driven, cost-reduction measures to support citizens and businesses.
He further noted that policies promoting productivity, stabilising prices, and cutting structural costs would help sustain this progress. With consistency and strong coordination, Yusuf believes Nigeria can reach single-digit inflation within the medium term, boosting growth, restoring consumer confidence, and improving national welfare.