Nigeria’s inflation rate has dropped to 18.02% in September 2025, a significant decrease of 2.1 percentage points from the 20.12% recorded in August 2025. According to the National Bureau of Statistics’ latest Consumer Price Index report, this marks the sixth consecutive month of declining inflation since April 2025. The decline follows a series of statistical adjustments earlier this year, including a change in the base year and a reweighting of items in the consumer price basket. Inflation had previously peaked at nearly 35% in December 2024.
On a year-on-year basis, the September 2025 headline inflation rate was 14.68 percentage points lower than the 32.70% recorded in September 2024. In terms of monthly changes, headline inflation stood at 0.72% in September, slightly lower than the 0.74% recorded in August 2025. Food inflation, which accounts for the largest share of household spending, eased to 16.87% in September from 21.87% in August, reflecting improved supply conditions and the impact of seasonal harvests.
The Central Bank of Nigeria has maintained its focus on disinflation, cutting its benchmark interest rate for the first time since 2020 in September. The bank’s governor, Olayemi Cardoso, has stated that the bank remains committed to a data-driven approach to monetary policy and is targeting single-digit inflation over the medium term. Urban and rural inflation trends also show a decline, with urban inflation standing at 17.50% in September 2025, a 17.63 percentage point decline from the same month in 2024. Rural inflation stood at 18.26% year-on-year in September 2025, a 12.23 percentage point drop from September 2024.
The decline in inflation rates is a positive development for Nigeria’s economy, indicating a slowdown in price increases and potentially paving the way for further economic growth. As the country continues to navigate its economic challenges, the Central Bank’s commitment to disinflation and the government’s efforts to improve supply conditions and stabilize the economy will be crucial in achieving single-digit inflation and promoting sustainable economic development. With the inflation rate continuing to trend downward, Nigeria may be on the path to achieving economic stability and growth, making it an important development to watch in the coming months.