Economy
Nigeria Inflation Drops to 20.12% in August but Prices Remain High
Nigeria inflation rate fell to 20.12% in August 2025, marking the fifth month in a row that the country has seen a decline in inflation, according to new data from the National Bureau of Statistics (NBS).....KINDLY READ THE FULL STORY HERE▶
The latest report also showed that food inflation, which directly affects the daily lives of millions of Nigerians, dropped to 21.87% from 22.74% in July. This decline was welcomed as a sign of progress, but many households say the relief has not been felt in local markets.
Why Inflation Is Dropping
Analysts link the downward trend to a more stable naira, improved supply conditions, and ongoing monetary policies by the Central Bank of Nigeria (CBN). A stronger naira helps reduce the cost of imported goods, while tighter financial policies aim to control money supply in the economy.
Economist Tunde Adebayo explained:
“The numbers show that inflation is cooling, but Nigerians are still struggling. What matters to people is the price they pay for rice, bread, and transport. Until those prices come down, the average citizen won’t feel the impact.”
Food Inflation Still a Major Concern
Even though food inflation declined slightly, it remains above 21%, which is high compared to global standards. The cost of rice, garri, beans, and vegetables continues to put pressure on household budgets.
A market survey in Lagos revealed that a 50kg bag of rice still sells for between ₦55,000 and ₦60,000, only a little lower than prices recorded earlier in the year. Similarly, bread prices have not dropped despite the fall in flour import costs.
For families earning low wages, these high prices mean cutting back on meals or choosing cheaper substitutes.
Mixed Reactions From Nigerians
While government officials celebrate the inflation numbers as a positive sign, many Nigerians disagree. On social media, users argued that the figures do not reflect the reality on the ground.
One resident in Abuja said:
“They keep saying inflation is falling, but when I go to the market, everything is still expensive. Tomatoes, onions, and oil are not cheaper.”
This frustration shows a gap between official statistics and lived experiences.
Impact on Businesses and Jobs
Businesses are also watching the inflation trend closely. For small businesses, especially in food and retail, the high cost of goods continues to affect profits. Many shop owners report that customers are buying less, which slows sales and weakens growth.
On the other hand, some manufacturers say the recent currency stability has reduced import costs for raw materials. If this trend continues, it could support job creation and production in the coming months.
Government and CBN’s Role
The government has promised to continue policies aimed at bringing inflation under control. The Central Bank of Nigeria is expected to maintain tight monetary measures while supporting programs that increase food production and stabilize supply chains.
Economic experts suggest that investments in agriculture and local manufacturing will be key to lowering food inflation further. If farmers can produce more locally, reliance on imports will drop, reducing the pressure on foreign exchange and consumer prices.
What Nigerians Can Expect Next
Although the inflation rate has dropped for five months straight, it is still above 20%, which is very high compared to other African economies like Ghana and Kenya. Experts warn that without consistent policy actions, inflation could rise again.
For now, Nigerians will likely continue to feel the pressure of high food and transport costs, even if official statistics show improvement.
The fall in Nigeria’s inflation rate to 20.12% in August is a positive step, but for many citizens, the real impact is yet to be seen. Prices in markets remain high, and families are still struggling with daily expenses.
Until the government addresses food supply, production costs, and wages, the numbers on paper will not match the economic reality in households across Nigeria.
According to Nivo News, the World Bank has projected that Nigeria’s economy will grow by 4.4 percent in 2026 and 2027, driven by new tax legislation, prudent monetary policies, and ongoing economic reforms. The announcement was made in the bank’s January 2026 Global Economic Prospects report, which described the anticipated growth rate as the fastest for Nigeria in over a decade.....KINDLY READ THE FULL STORY HERE▶
This latest projection represents an upgrade from the World Bank’s previous forecast of 3.7 percent published in June 2025. The bank highlighted that reforms in the tax system, combined with continued monetary prudence, are expected to stimulate economic activity, improve investor confidence, and reduce inflation. It also noted that increased oil production is likely to offset lower global oil prices, boosting fiscal revenue and strengthening Nigeria’s external balance.
The projection comes against the backdrop of Nigeria’s Gross Domestic Product (GDP) growth of 3.98 percent year-on-year in real terms during the third quarter of 2025, as reported by the National Bureau of Statistics.
Nigeria’s headline inflation rate eased to 14.45 per cent year on year in November 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS). The report showed that while consumer prices continued to rise on a monthly basis, annual inflation moderated significantly under the revised base year.....KINDLY READ THE FULL STORY HERE▶
The CPI increased to 130.5 points in November from 128.9 points in October, marking a 1.6-point month-on-month rise. Despite this, the headline inflation rate declined from 16.05 per cent recorded in October. The NBS highlighted that the November 2025 figure represents a 1.6 percentage point decrease compared with the previous month.
Monthly inflation, however, rose to 1.22 per cent in November from 0.93 per cent in October, indicating that average prices increased at a faster pace during the month despite the moderation in annual inflation. Headline inflation for November 2025 was 20.15 percentage points lower than the 34.60 per cent recorded in November 2024, reflecting the impact of the rebasing exercise that reset the base year to 2024 from 2009.
Over the twelve months ending November 2025, the average CPI increased by 20.41 per cent, down sharply from 32.77 per cent in the corresponding period of 2024. Food and non-alcoholic beverages remained the largest contributor to annual headline inflation at 5.78 percentage points, followed by restaurants and accommodation services at 1.87 percentage points, and transport at 1.54 percentage points. Housing, water, electricity, gas and other fuels added 1.22 percentage points, while education and health contributed 0.90 and 0.88 percentage points, respectively. On a month-on-month basis, food and non-alcoholic beverages drove price increases with a contribution of 0.49 percentage points.
Urban inflation declined sharply to 13.61 per cent year on year in November, down 23.49 percentage points from November 2024, while rural inflation remained higher at 15.15 per cent but fell 17.12 percentage points from the previous year. Month-on-month, urban inflation slowed to 0.95 per cent, while rural inflation accelerated to 1.88 per cent.
Food inflation moderated annually to 11.08 per cent in November 2025 from 39.93 per cent in November 2024. Monthly food inflation rose to 1.13 per cent, driven by price increases in items such as dried tomatoes, cassava tubers, ground pepper, eggs, crayfish, egusi, oxtail, and fresh onions. Core inflation, which excludes volatile agricultural and energy prices, stood at 18.04 per cent year on year, down from 28.75 per cent in November 2024.
State-level data showed Rivers recorded the highest year-on-year inflation at 17.78 per cent, followed by Ogun at 17.65 per cent and Ekiti at 16.77 per cent. Plateau had the lowest at 9.13 per cent, alongside Kebbi at 10.32 per cent and Katsina at 10.60 per cent. The NBS cautioned that interstate comparisons should be interpreted carefully due to differing consumption patterns and CPI weights across states.
The Nigerian National Petroleum Company Limited (NNPCL) has set a crude oil production target of more than two million barrels per day for 2026, citing strong collaboration with pipeline host communities as a key factor in sustaining increased output.....KINDLY READ THE FULL STORY HERE▶
Akponime Omojevwhe, Head of Field Operations, Eastern Corridor, Project Monitoring Office (PMO), disclosed the projection during a monthly stakeholders’ meeting with host communities along the Trans Niger Pipeline in Port Harcourt. The meeting was organized by Pipeline Infrastructure Nigeria Limited (PINL).
Omojevwhe revealed that the 2026 national production budget is pegged at 2.80 million barrels per day (mbpd), with a starting benchmark of 1.84 mbpd and a targeted achievable output of 2.06 mbpd. He affirmed that the Trans Niger Pipeline is currently operating efficiently, attributing its success to the active cooperation between local communities, stakeholders, and PINL.
He emphasized that community participation is critical to pipeline protection, stating, “No private security structure can succeed without grassroots involvement. The communities are a vital part of this job. Their continued support ensures uninterrupted flow along the pipeline.”
Edi Julius, representing the Minister of State for Petroleum (Oil), Heineken Lokpobiri, lauded the partnership between PINL and the communities, noting that local peace is essential for boosting national oil production. “We are confident that by 2026, Nigeria will exceed two million barrels per day, generating additional revenue and enabling greater support for host communities,” he added.
Dr. Akpos Mezeh, General Manager of Community and Stakeholders’ Relations at PINL, reviewed the year’s progress, highlighting achievements such as strengthened security along the TNP corridor, expanded stakeholder engagement, empowerment programs for women and students, zero incidence of illegal bunkering, and improved community-company trust. He also announced Christmas palliatives for the 215 TNP host communities.
Responding on behalf of the host communities, His Majesty King Philip Osaro Obele urged the federal government to channel more development projects into the region. He praised PINL for its transparency and consistent engagement, emphasizing that ongoing dialogue is essential to maintaining peace along the pipeline.
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