Nigeria’s efforts to tame inflation have received a major boost as the National Bureau of Statistics (NBS) announced that the country’s headline inflation rate dropped to 18.02 per cent in September 2025, marking its lowest level in three years.
Okay News reports that the latest Consumer Price Index (CPI) released by the NBS on Wednesday showed a consistent moderation in inflation for the sixth consecutive month, down from 19.12 per cent recorded in August 2025.
The report attributed the decline to improved food supply, relative stability in the foreign exchange market, and tighter monetary policies implemented by the Central Bank of Nigeria (CBN). It also highlighted that this is the first time since 2022 that inflation has fallen below the 20 per cent mark.
According to the NBS, “In September 2025, the headline inflation rate eased to 18.02 per cent relative to the August 2025 rate of 20.12 per cent, representing a 2.1 per cent decrease month-on-month. On a year-on-year basis, it was 14.68 per cent lower than the 32.70 per cent recorded in September 2024.”
The Bureau noted that the moderation in inflation reflected a gradual easing of price pressures, adding that on a month-to-month basis, inflation stood at 0.72 per cent in September compared to 0.74 per cent in August.
The report further indicated that the twelve-month average inflation ending in September 2025 was 23.46 per cent, showing an 8.27 per cent drop compared to 31.73 per cent in the same period of 2024.
The positive trend aligns with President Bola Ahmed Tinubu’s earlier commitment to reduce Nigeria’s inflation rate to 15 per cent by the end of 2025. In his New Year broadcast, the President had promised reforms to boost food production, strengthen the naira, and stabilize the economy after inflation hit a two-decade high of 34.8 per cent in December 2024.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, credited the progress to stronger national security, increased agricultural output, and improved oil production, saying these factors have started to reflect in the economy.
Economists have since reacted to the new inflation figures, describing them as encouraging signs of macroeconomic recovery.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said he was confident that Nigeria could still achieve the 15 per cent target.
“I hear people say 15 per cent inflation is not possible, but I disagree. Even if conditions remain tough, the reforms in place will limit key inflationary factors, paving the way for much lower rates,” Oyedele said.
The NBS report also revealed that food inflation stood at 16.87 per cent year-on-year, about 20.9 per cent lower than the 37.77 per cent recorded in September 2024. It attributed the drop to a fall in the average prices of staples such as maize, garri, beans, millet, onions, tomatoes, eggs, and potatoes.
Food inflation was highest in Ekiti (28.68%), Rivers (24.18%), and Nasarawa (22.74%), while Bauchi (2.81%), Niger (8.38%), and Anambra (8.41%) recorded the slowest growth rates, indicating more stable food prices in those states.
Reacting to the report, the Centre for the Promotion of Private Enterprise (CPPE) commended the steady decline in inflation, calling it a sign of “growing policy traction.”
The CEO of CPPE, Muda Yusuf, said, “The latest figures show that inflationary pressures are gradually subsiding. Headline inflation has eased, food inflation has dropped sharply, and core inflation is also moderating. These are encouraging signs that policy reforms are taking hold.”
However, Yusuf cautioned that despite the progress, the current inflation level still undermines purchasing power and consumer confidence. He urged the government to sustain the gains through targeted economic measures.
“High transport costs, insecurity in farming regions, and multiple levies are still inflating logistics expenses. Government must consolidate these gains by improving agricultural productivity, strengthening security, and fixing major transport corridors,” he added.
In his remarks, Olatunde Amolegbe, Managing Director of Arthur Stevens Asset Management Limited, said the decline reflected “the impact of lower food prices and steady energy costs.”
“The disinflation was mainly due to relatively lower food prices and steady energy prices. Structural challenges remain, but it’s encouraging that we’re seeing a slowdown in price increases. If this continues, Nigeria may achieve further declines soon,” he said.
Experts agree that if the current fiscal discipline and monetary tightening persist, Nigeria may soon move closer to its 15 per cent inflation target, boosting investor confidence and overall economic stability.
