October 17, (THEWILL) — Nigeria’s inflation rate fell to 18.02 percent in September 2025, dropping below 20 percent for the first time since 2022.
The development, confirmed by the National Bureau of Statistics (NBS), has boosted optimism from Central Bank Governor, Olayemi Cardoso, who hailed the decline as evidence that the Bank’s tough policy measures are beginning to restore price stability.
Core inflation eased to 19.53 percent, while food inflation moderated to 16.87 percent. The sustained decline marks the sixth consecutive month of easing and a sharp reversal from June 2024, when inflation peaked at 34.19 percent.
Over the past year, the Central Bank of Nigeria (CBN) pursued one of its most aggressive tightening cycles in decades, raising the Monetary Policy Rate (MPR) from 18.75 percent to 27.50 percent and lifting the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and 16 percent for merchant banks.
In September, the Bank adjusted its stance slightly, trimming the MPR to 27.00 percent and reducing the CRR for commercial banks to 45 percent, while pledging to maintain firm anti-inflationary measures.
Reforms in the foreign exchange market have reinforced the Bank’s monetary actions. Exchange rate unification and greater transparency in FX transactions have stabilized the naira, narrowing the gap between official and Bureau de Change (BDC) rates to below two percent.
Analysts say improved liquidity in the FX market has helped reduce imported inflation and strengthened overall price stability.
Nigeria’s foreign reserves remain above $43 billion, providing more than eleven months of import cover, supported by steady forex inflows. Meanwhile, better food supply conditions and moderating petroleum product prices have further supported the disinflationary trend.
Speaking at the ongoing Annual Meetings of the International Monetary Fund (IMF) and World Bank Group, Governor Cardoso expressed confidence that inflation would continue to ease in the months ahead.
“We expect inflation to continue to trend downward in the near term, supported by tight monetary conditions, a stable naira, and increased food supply”, he said.
The CBN said it remains committed to strengthening the disinflation trend, supported by a combination of exchange rate stability, durable improvements in food supply, and continued moderation in petroleum product prices.
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