Nigeria’s headline inflation rate eased significantly to 18.02% in September 2025, marking a notable decline from 20.12% recorded in August 2025.
According to the latest data released by the National Bureau of Statistics (NBS), the 2.1 percentage-point drop is attributed to a gradual easing of price pressures across key consumer categories, driven largely by improvements in food supply and relative currency stability.
On a year-on-year basis, the September 2025 headline inflation rate was 14.68% lower than the 32.70% recorded in September 2024, indicating a sharp slowdown in general price increases over the past 12 months.
In contrast, the month-on-month inflation rate stood at 0.72%, a slight decrease from 0.74% in August 2025, showing that the rate of price increases slowed further during the month. This suggests that the average price level in September rose at a slower pace than in the preceding month.
Key Drivers of Inflation
At the divisional level, Food and Non-Alcoholic Beverages continued to dominate inflationary pressures, contributing 7.21% to the headline index on a year-on-year basis. This was followed by Restaurants and Accommodation Services (2.33%), Transport (1.92%), and Housing, Water, Electricity, Gas, and Other Fuels (1.52%).
Other notable contributions included Education (1.12%), Health (1.09%), Clothing and Footwear (0.91%), and Information and Communication (0.59%). Smaller divisions such as Personal Care and Miscellaneous Goods (0.59%), Furnishing and Household Maintenance (0.53%), and Recreation, Sport, and Culture (0.06%) made marginal contributions.
On a month-on-month basis, Food and Non-Alcoholic Beverages remained the largest contributor at 0.29%, followed by Restaurants and Accommodation Services (0.09%), Transport (0.08%), and Housing and Utilities (0.06%).