Nigeria’s annual inflation rate fell to 18.02 percent in September 2025, its lowest level in more than three years, as food prices moderated and seasonal harvests improved supply, the National Bureau of Statistics (NBS) reported. The figure represents a decline from 20.12 percent recorded in August, marking the sixth consecutive month of disinflation, Reuters reported.
The slowdown was largely driven by easing food inflation, which dropped to 16.87 percent from 21.87 percent in the previous month. The NBS noted that the most significant contributors to inflation during the period included food and non-alcoholic beverages, restaurant and accommodation services, and transport. Improved agricultural output and better logistics helped ease pressure on household spending.
The decline follows months of economic reform under President Bola Tinubu’s administration, including the removal of fuel subsidies and the unification of exchange rates, which had initially triggered sharp price increases. Analysts say the latest figures suggest that inflationary pressures are beginning to ease as fiscal and monetary measures take effect.
In response to the trend, the Central Bank of Nigeria cut its benchmark interest rate by 50 basis points in September to 27 percent, marking its first-rate reduction since 2020. The bank indicated that it could consider further policy easing if the downward inflation trajectory continues in the coming months.
