By Olayiwola Mercy
Nigeria’s inflation rate has been on a downward trend, thanks to improved forex stability and food supply. The National Bureau of Statistics (NBS) reported that inflation fell to 16.05% in October 2025, the lowest in 44 months. This decline is attributed to a combination of factors, including a stable foreign exchange market, improved food supply, and better logistics.
The Central Bank of Nigeria (CBN) has played a significant role in stabilizing the forex market, which has helped to reduce inflationary pressures. The CBN’s efforts to clear the $7 billion FX backlog and implement policies to boost foreign exchange inflows have contributed to the stability of the naira. As a result, food prices have eased, with food inflation dropping to 13.12% in October 2025.
Improved agricultural output has also contributed to the decline in inflation. The harvest season has led to increased food supply, which has helped to reduce prices. The government’s initiatives to boost agricultural production, such as the National Agricultural Growth Scheme (NAGS) Agro-Pocket programme, have also supported the growth of the sector .
The decline in inflation is expected to continue, with forecasts suggesting that it could drop to around 14% by the end of 2025. This trend is likely to be supported by the CBN’s monetary policy decisions, including potential interest rate cuts. The stable forex environment and improved food supply are expected to drive further disinflation in the coming months.
The impact of the decline in inflation is expected to be felt across various sectors, including food, transportation, and housing. As prices ease, consumers are likely to benefit from increased purchasing power. The decline in inflation could also boost economic growth, with forecasts suggesting that Nigeria’s GDP could grow by 3.5% in 2025.
Overall, the decline in inflation is a positive development for Nigeria’s economy. The CBN’s efforts to stabilize the forex market, combined with improved agricultural output, have contributed to the decline in inflation. As the trend continues, Nigerians can expect to see further improvements in their standard of living .
