Inflation rate dropped to 16.05 per cent in October 2025, recording its lowest level since 2017, according to the National Bureau of Statistics (NBS).
The latest data extends a seven-month downward trend, signalling a gradual improvement in the country’s macroeconomic environment after years of persistent price pressures.
The NBS report shows that headline inflation slowed from 18.02 per cent in September, driven largely by moderation in food prices and relative stability in the exchange rate.
Food inflation, which has been the biggest contributor to the cost-of-living crisis, also recorded a noticeable slowdown as prices of key staples such as maize, garri, yam, rice and vegetables rose at a slower pace than in previous months.
The agency explained that the decline is also linked to the newly updated Consumer Price Index (CPI) framework introduced this year.
The rebased CPI uses 2023 as the new weight reference period and 2024 as the price reference year, expanding the national consumption basket to 934 product varieties under 13 divisions.
The NBS stated that the update ensures inflation figures more accurately reflect current spending patterns nationwide.
.
Despite the positive trend, analysts warn that Nigerians continue to struggle with high living costs. Transport fares remain elevated due to fuel price instability, and insecurity in farming areas continues to affect food supply. Energy costs also remain a concern for households and businesses, especially in urban centres.
The decline in inflation, however, has provided some relief to policymakers. In September, the Central Bank of Nigeria reduced the Monetary Policy Rate from 27.5 per cent to 27 per cent, marking its first rate cut in five years.
The bank attributed the decision to a more stable inflation outlook and early signs of rising consumer confidence.
The October figure comes at a period when the government is intensifying efforts to address structural constraints in the economy.
Recent steps include increased support for dry-season farming, ongoing refinery repairs to stabilise fuel supply, and measures aimed at easing foreign exchange volatility.
In related developments, global commodity prices have remained relatively stable, which has helped ease import-driven inflationary pressures.
Within West Africa, several countries, including Ghana and Sierra Leone, also recorded marginal declines in inflation in recent months, reflecting broader regional improvements in food supply chains.
Economists note that sustained disinflation will require consistent policy alignment between the fiscal and monetary authorities, alongside improvements in energy supply, security and infrastructure.
The NBS said it expects continued moderation in inflation if current stability in key sectors is maintained, though the trajectory remains vulnerable to global shocks and domestic supply disruptions.
