Signs of an improving economy is simmering in the horizon as Nigeria’s inflation rate dropped for the fifth straight month. According to the National Bureau of Statistics (NBS), it eased to 20.12% in August 2025 from 21.88% in July.
This is a 1.76 percentage point decline, continuing the downward trend since April, when inflation peaked at 23.71%.
“In August 2025, the headline inflation rate eased to 20.12 percent relative to the July 2025 headline inflation rate of 21.88 percent,” the NBS stated.
On a year-on-year basis, inflation fell by 12.03 percentage points compared to 32.15% recorded in August 2024.
Urban vs. Rural Inflation
Urban inflation dropped to 19.75%, while rural inflation stood slightly higher at 20.28%. The NBS attributed part of the decline to a change in the CPI base year (November 2009 = 100).
Food inflation also slowed to 21.87% in August from 22.70% in July. The drop was driven by falling prices of staples like rice, maize flour, millet, semolina, and soya milk.
Year-on-year, food inflation fell by 15.65 percentage points compared to 37.52% in August 2024.
State-Level Food Inflation Varies Widely
The report showed sharp differences across states:
- Highest rates: Borno (36.67%), Kano (30.44%), Akwa Ibom (29.85%)
- Lowest rates: Zamfara (3.30%), Yobe (3.60%), Sokoto (6.34%)
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