Nigeria’s headline inflation rate fell for the sixth consecutive month in
September, easing to 18.02 per cent, its lowest level in three years.
According to new data released by the National Bureau of Statistics
(NBS).Core inflation slowed to 19.53 percent, while food inflation
moderated to 16.87 percent over the same period.
The sustained decline marks a significant reversal from the inflationary peak of 34.19 percent in June 2024 ,reflecting the impact of the Central Bank of Nigeria’s (CBN) decisive monetary policy actions to restore price stability and anchor expectations.
In response to those pressures, the CBN raised its Monetary Policy Rate
(MPR) from 18.75 per cent to 27.50 per cent through a sustained tightening cycle, while increasing the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and 16 percent for merchant banks.
At itsSeptember 2025 meeting, the Bank eased slightly, loweringthe MPR by 50 basis points to 27.00 percent and the CRR for commercial banks to
45 percent, while maintaining a firm anti-inflationary stance.
Monetary tightening was complemented by reforms in the foreig exchange market, including exchange rate unification and enhanced transparency to improve price discovery in the market.
The naira has since stabilized, with the spread between the official and Bureau de Change (BDC) rates narrowing to below 2 percent.
Improved liquidity in the FX market has helped reduce the pass through of imported inflation and reinforced price stability.
Foreign reserve remain above $43billionv, providing more than eleven months of forward import cover, supported by sustained forex inflows.
TheCBN 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.
Governor of the CBN, Mr.Olayemi Cardoso, attheongoingAnnual
meetings of the International Monetary Fund and the World Bank Group, stated,“We expect inflation to continue to trend downward in the near term, supported by tight monetary conditions, a stable naira,and increased food supply
