• Headline inflation fell to 18.02% in September 2025, the lowest since June 2022.
• The Central Bank of Nigeria cut its benchmark interest rate by 50 basis points to 27% to support growth.
• Food inflation declined to 7.21% in September from 8.05% in August, with similar drops in transport and housing costs.

Nigeria’s headline inflation dropped to 18.02% in September 2025, marking its lowest level in three years and a sharp decline from 32.70% recorded in September 2024. The figure, released by the National Bureau of Statistics (NBS) on October 15, confirms a sustained disinflation trend that began earlier this year.

In August, the rate stood at 20.12%, down from 24.23% in March. The September reading marks the first time inflation has fallen below 18.5% since June 2022, when it reached 18.6%.

The NBS report attributed the slowdown to lower price pressures in key expenditure categories. Food and non-alcoholic beverages, which represent the largest component of household spending, dropped to 7.21% in September from 8.05% a month earlier. Restaurant and accommodation services fell to 2.33% from 2.6%, while transportation declined to 1.92%. Housing, water, electricity, gas, and other fuels also eased to 1.52%.

Analysts say the moderation reflects a broader stabilization of consumer prices after months of volatility driven by currency and energy shocks.

The government implemented several structural reforms in 2023 to contain inflation, including the removal of fuel subsidies, the liberalization of the foreign exchange market, and the temporary suspension of import taxes on essential goods. These measures aimed to restore fiscal balance while easing cost pressures on consumers.

In line with the downward trend, the Central Bank of Nigeria (CBN) reduced its monetary policy rate by 50 basis points to 27%, the first cut in five years. The bank said the move aims to support economic growth and consolidate the recent easing in price pressures.

This article was initially published in French by Lydie Mobio

Adapted in English by Ange Jason Quenum