Story perspectives

Nigeria's Inflation Drops to 20.12%, Marking 5-Month Decline

9/18/2025

Summary

Nigeria's Inflation Decrease

Nigeria's headline inflation fell to 20.12% in August 2025, marking the fifth consecutive monthly decrease from 21.88% in July.
Month-on-month inflation slowed to 0.74%, the lowest in over a year.
Food inflation decreased to 21.87%, and core inflation dropped to 20.33%.
The Centre for the Promotion of Private Enterprise (CPPE) credits improved agricultural output and a stable foreign exchange market for this decline.
CPPE urges reforms to maintain these economic gains, while noting rising business confidence and fragile consumer confidence due to high food prices.

Summary

Nigeria's Inflation Challenges

Experts caution that Nigeria's inflation reduction may not last without tackling fundamental issues such as unreliable power, unemployment, and exchange rate fluctuations.
The opposition criticizes the APC administration for failing to create conditions for economic growth, calling inflation reduction claims political propaganda.
The PDP challenges the government's optimism about reaching single-digit inflation, stressing the need for tangible improvements in citizens' living conditions.
High food prices and diminished purchasing power persist, undermining consumer confidence despite recent declines in inflation.

History

Historical Context

Nigeria's Structural Adjustment Program, initiated in 1986, aimed to reform the economy but led to soaring inflation, peaking at 72.8% in 1995. Today, inflation stands at 20.12%, reflecting ongoing economic challenges, including power reliability and unemployment. Without addressing these issues, the recent decline in inflation may not be sustainable, threatening further hardship for citizens and business confidence.

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Nigeria's Inflation Decrease

Nigeria's headline inflation fell to 20.12% in August 2025, marking the fifth consecutive monthly decrease from 21.88% in July.
Month-on-month inflation slowed to 0.74%, the lowest in over a year.
Food inflation decreased to 21.87%, and core inflation dropped to 20.33%.
The Centre for the Promotion of Private Enterprise (CPPE) credits improved agricultural output and a stable foreign exchange market for this decline.
CPPE urges reforms to maintain these economic gains, while noting rising business confidence and fragile consumer confidence due to high food prices.

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