Nigeria’s inflation rate has fallen for the sixth consecutive month, reaching 18.02 percent in September 2025, down from 20.12 percent in August. The Centre for the Promotion of Private Enterprise (CPPE) attributes this decline to a mix of structural and macro‑economic factors. According to the CPPE, disinflation is being driven by an increased food supply from the harvest season, the base‑effect of the high inflation recorded in 2024, improved exchange‑rate stability, and better coordination between fiscal and monetary authorities.
CPPE Chief Executive Officer Muda Yusuf said the falling inflation indicates that price pressures are gradually easing and that recent policy measures are beginning to show results. He highlighted that the harvest season has helped lower food prices, the base effect has moderated overall inflation, and the relative stability of the naira has contributed to the trend. Additionally, tighter monetary policy and reduced fiscal leakages have eased inflationary pressures.
Despite the positive trend, the CPPE cautioned that inflation remains high enough to erode household purchasing power, undermine consumer confidence, and weaken real incomes. The cost‑of‑living crisis is still acute, especially for low‑ and middle‑income families, and the next phase of reform must focus on welfare‑oriented and cost‑reduction measures. While business confidence is rising, consumer confidence remains fragile. Policies that boost productivity, stabilize prices, and lower the structural cost of doing business are essential for an inclusive and sustainable economic recovery.
The CPPE stresses that with consistent 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. It urges policymakers to consolidate the gains made so far through decisive, well‑targeted actions. As Nigeria continues to navigate its economic challenges, the CPPE’s analysis offers valuable insight into the drivers of inflation and the need for sustained policy efforts to attain stability and growth.
Comments are closed for this story.