By Olamilekan Abayomi
Nigeria’s inflation rate has dropped to 15.15% in December 2025, according to the National Bureau of Statistics (NBS). This marks a significant decrease from the 17.33% recorded in November 2025.
The core inflation rate, which excludes volatile prices of agricultural produce and energy, also slowed to 18.63% in December 2025, down from 20.59% in November. This decline indicates a broader easing of price pressures in the economy.
The NBS attributes this decline to a methodological adjustment, using a 12-month 2024 average as the reference point instead of December 2024 alone, preventing an artificial spike in year-on-year inflation. This adjustment provides a more accurate picture of Nigeria’s inflation trend.
Food inflation, a major component, eased to 10.84% year-on-year from 39.84% in December 2024. This decrease is a welcome relief for consumers, as food prices had been a significant contributor to inflation.
President Bola Tinubu projects further inflation decline in 2026, with the Central Bank of Nigeria forecasting an average of 12.94% for the year. The government has implemented various policies to address inflation, including increasing food production and improving supply chains.
The World Bank also estimates Nigeria’s inflation rate to drop to 15.1% by 2026. This optimistic outlook is based on the government’s efforts to stabilize the economy and improve macroeconomic conditions.
Overall, the decline in inflation is a positive development for Nigeria’s economy, and continued efforts to address underlying challenges will be crucial for sustained growth and stability.
