Nigeria’s Inflation Rate Falls to Three-Year Low at 18.02%

By Emmanuel Miracle Naomi
Nigeria’s inflation rate has fallen to its lowest level in three years, offering a brief relief to households and policymakers after months of economic strain.
According to data released by the National Bureau of Statistics (NBS) on Tuesday, headline inflation declined to 18.02% in September 2025, down from 20.12% in August. This marks the sixth consecutive month of decline, signaling a gradual easing of price pressures in Africa’s largest economy.
The NBS attributed the slowdown mainly to a moderation in food inflation, which dropped from 23.7% in August to 21.5% in September, reflecting improved food supply and stability in some agricultural markets. The bureau noted that reduced transport costs and better distribution of food items also contributed to the decline.
Economists, however, caution that despite the downward trend, prices remain elevated compared to pre-2022 levels, with many Nigerians still struggling to cope with the high cost of living.
In response, the Central Bank of Nigeria (CBN) said it would continue to implement measures aimed at stabilizing prices while supporting growth. “The recent inflation slowdown is encouraging, but sustained efforts are required to consolidate this progress,” a CBN spokesperson said.
The latest figures come as the government intensifies efforts to strengthen food production, improve energy supply, and ease logistics challenges, all crucial for maintaining long-term price stability.
If the trend continues, analysts say Nigeria could end 2025 with inflation closer to the government’s target range of 15–16%, marking a significant improvement in economic outlook.