Nigeria’s headline inflation rate eased to 18.02 percent in September 2025, marking the sixth consecutive monthly decline and the lowest level in three years, according to new data from the National Bureau of Statistics (NBS).
The report shows that core inflation slowed to 19.53 percent, while food inflation moderated to 16.87 percent, reflecting sustained disinflation across key components of the consumer basket.
The continued decline follows a sharp reversal from the peak of 34.19 percent recorded in June 2024, attributed to the Central Bank of Nigeria’s (CBN) aggressive monetary tightening aimed at restoring price stability.
To contain inflationary pressures, the CBN raised the Monetary Policy Rate (MPR) from 18.75 percent to 27.50 percent and increased the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and 16 percent for merchant banks during its tightening cycle.
At its September 2025 meeting, the Bank slightly eased policy, cutting the MPR by 50 basis points to 27.00 percent and lowering the CRR for commercial banks to 45 percent, while maintaining a strong anti-inflation stance.
Monetary measures were supported by foreign exchange market reforms, including exchange rate unification and enhanced transparency that improved liquidity and narrowed the gap between the official and Bureau de Change (BDC) rates to below 2 percent.
The naira’s stability has helped moderate imported inflation and anchor market expectations.
Nigeria’s foreign reserves remain robust at over $43 billion, providing more than 11 months of import cover, backed by steady forex inflows.
CBN Governor Olayemi Cardoso, speaking at the IMF–World Bank Annual Meetings, said the downward inflation trend is expected to continue, driven by “tight monetary conditions, a stable naira, and improved food supply.”
He reaffirmed the Bank’s commitment to sustaining disinflation through a mix of monetary discipline, exchange rate stability, and structural reforms to boost domestic production and food security.
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