Nigerian inflation slows to more than three-year in September as food prices ease, CPPE recommends food security to sustain gains

Nigeria’s inflation rate continued its downward trend in September 2025 according to data released by Nation Bureau of Statistics, NBS. The new inflation data showed that headline inflation dropped to 18.02% year-on-year, down from 20.12% in August. On a monthly basis, Inflation dropped as well to 0.72% from 0.74% in August. In September 2025 NBS said that the headline CPI recorded 18.02%, from 20.12% recorded in August 2025. On a month-to-month basis, the inflation rate in September 2025 was 0.72%, which was 0.02% lower than the rate recorded in August 2025 (0.74%). Food inflation, a significant driver of overall inflation, fell to 16.87% in September 2025 from 21.87% in August 2025. On a month-on-month basis, September 2025 was -1.57%, down by 3.22% compared to August 2025 (1.65%). Core inflation, which excludes volatile agricultural produce and energy prices, stood at 19.53% in September, from 20.33% in August 2025. On a month-on-month basis, the Core Inflation rate was 1.42% in September 2025, down by 0.01% compared to August 2025 (1.43%).
Meanwhile Centre for the Promotion of Private Enterprise has urged government to consolidate the current gains and sustain the disinflation momentum, CPPE recommends the following strategic policy interventions the strengthening of security in farming regions to facilitate production and market access; expand irrigation and storage infrastructure to stabilize food supply across seasons; promote mechanization and input access through targeted support programs; rehabilitate key federal and state transport corridors; streamline checkpoints and eliminate informal levies on inter-state movement and improve intermodal connectivity to reduce travel time and costs. Other CPPE recommendation are government to implement transitional energy support schemes for productive sectors; promote investments in renewable and off-grid power to enhance reliability; enforce efficiency in the electricity value chain to lower tariffs and improve supply; deepen credit guarantees and concessional financing for SMEs and the real sector; Strengthen the development finance institutions’ role in channeling funds to productive enterprises; simplify international trade processes and eliminate multiple agency checkpoints. It also urge government to digitize clearance procedures at the ports to reduce time and costs. Harmonize port charges and enforce transparency in the port value chain; maintain exchange rate stability through credible market-based mechanisms; strengthen coordination between fiscal and monetary authorities to prevent policy contradictions and guard against fiscal slippages that could re-ignite inflationary pressures.
Inflation fell to its lowest level in more than three years in September, driven by a moderation in food prices, official data showed, offering some relief to policymakers battling cost-of-living pressures. The National Bureau of Statistics said the consumer price index dropped to 18.02% year-on-year last month, down from 20.12% in August. Inflation had peaked near 35% in December, before the statistics office revised its base year and adjusted the weighting of items in its price basket earlier this year. Food inflation, which accounts for the bulk of household spending, eased to 16.87% in September from 21.87% the previous month, reflecting improved supply conditions and seasonal harvests. Food and non-alcoholic beverages, restaurants and accommodation services, and transport contributed the most to inflation, the NBS said.
The slowdown comes as Nigerians continue to grapple with the economic fallout of sweeping reforms introduced by President Bola Tinubu, including the removal of fuel subsidies and the unification of the exchange rate. While aimed at restoring fiscal discipline and attracting investment, the measures have triggered a sharp rise in living costs. The Central Bank of Nigeria last month cut its benchmark interest rate for the first time since 2020, citing projections for continued disinflation. Governor Olayemi Cardoso said the bank was targeting single-digit inflation and would maintain a data-driven approach to monetary policy. Analysts say the sustained decline in inflation could give the central bank room to further ease rates, though risks remain from weak consumer demand and fiscal pressures.