Table of Contents
- Inflation Drop in Nigeria
- Statement from CPPE CEO
- Factors Contributing to Disinflation
- Challenges That Remain
- Future Reforms Needed
- Conclusion
The Centre for the Promotion of Private Enterprise (CPPE) has reported that Nigeria's inflation rate decreased for the sixth consecutive month in September 2025, now standing at 18.02 percent, down from 20.12 percent in August. This decline is attributed to a combination of structural and macroeconomic factors.
CPPE's Chief Executive Officer, Muda Yusuf, shared this information in a statement addressing Nigeria's most recent inflation statistics.
According to the economic think tank, the nation is experiencing disinflation due to an increase in food supply resulting from the harvest season, the base effect of inflation, enhanced exchange rate stability, and improved coordination between fiscal and monetary authorities.
The center indicated that the reduction in inflation signifies that inflationary pressures are gradually easing and that recent policy measures are starting to produce positive outcomes.
In the CPPE statement, it was noted: “Increased food supply during the harvest season has helped to lower food prices. Additionally, the base effect of inflation rates in 2024 averaged above 30 percent, establishing a high statistical base that supports a relative decline in current inflation figures; the naira has shown relative stability — and mild appreciation in some months — which has contributed to moderating imported inflation; improvements in macroeconomic policy through tighter monetary policy, reduced fiscal leakages, and better coordination between fiscal and monetary authorities have played a role in alleviating inflationary pressures.
“These factors collectively account for the progress made in moderating prices, although the underlying structural issues that cause cost-push inflation remain significant.”
However, CPPE clarified that inflation levels are still high, continuing to diminish household purchasing power, undermine consumer confidence, and weaken real incomes.
It stated: “The ongoing trend of disinflation is a positive development and an indication of improving macroeconomic fundamentals.
“Nonetheless, the cost-of-living crisis remains severe, especially for low- and middle-income households. The next phase of reform must prioritize welfare-focused and cost-reduction measures that provide genuine relief to citizens.
“While business confidence is increasing, consumer confidence remains fragile. Policies that boost productivity, stabilize prices, and lower the structural cost of doing business will not only reinforce the disinflation trend but also promote inclusive and sustainable economic recovery.
“With consistency, coordination, and structural reforms, Nigeria can achieve a stable single-digit inflation rate in the medium term — fostering growth, enhancing welfare, and restoring trust in the economy.”
CPPE emphasized that “the progress made thus far must be consolidated through decisive and well-targeted policy actions.”
As reported by DAILY POST, Nigeria's inflation has indeed decreased for the sixth consecutive month in September 2025.
Frequently Asked Questions
What is the current inflation rate in Nigeria?
As of September 2025, Nigeria's inflation rate has dropped to 18.02 percent.
What factors contributed to the decrease in inflation?
The decrease in inflation is attributed to increased food supply during the harvest season, improved exchange rate stability, and better coordination between fiscal and monetary authorities.
What challenges still exist despite the drop in inflation?
Despite the drop in inflation, high inflation levels continue to erode household purchasing power and undermine consumer confidence.
