Nigeria’s inflation rate has dropped for the sixth consecutive month, reaching 18.02 percent in September 2025, down from 20.12 percent in August. According to the Centre for the Promotion of Private Enterprise (CPPE), this decline is attributed to a combination of structural and macroeconomic factors.

The CPPE, a leading economic think tank, explained that the country is experiencing disinflation due to increased food supply resulting from the harvest season, the base effect of inflation, improved exchange rate stability, and better coordination between fiscal and monetary authorities. The centre’s Chief Executive Officer, Muda Yusuf, stated that the decline in inflation suggests that inflationary pressures are gradually subsiding and that recent policy measures are beginning to yield results.

The CPPE cited several factors contributing to the decline in inflation, including the harvest season’s impact on food prices, the base effect of high inflation rates in 2024, and the relative stability of the naira. The centre also noted that macroeconomic policy improvements, such as tighter monetary policy and reduced fiscal leakages, have contributed to easing inflationary pressures.

While the decline in inflation is a positive development, the CPPE cautioned that the counterinflation levels remain high, eroding household purchasing power, undermining consumer confidence, and weakening real incomes. The centre emphasized that the cost-of-living crisis remains acute, particularly for low- and middle-income households, and that the next phase of reform must prioritize welfare-focused and cost-reduction measures.

The CPPE stressed that business confidence is rising, but consumer confidence remains fragile, and that policies that enhance productivity, stabilize prices, and reduce the structural cost of doing business will foster inclusive and sustainable economic recovery. With consistency, coordination, and structural reforms, Nigeria can achieve a stable single-digit inflation rate over the medium term, anchoring growth, improving welfare, and restoring confidence in the economy.

The decline in inflation is a significant development, and the CPPE urged policymakers to consolidate the gains achieved so far through decisive and well-targeted policy actions. As Nigeria continues to navigate its economic challenges, the CPPE’s analysis provides valuable insights into the factors driving inflation and the need for sustained policy efforts to achieve economic stability and growth.