Nigeria’s Inflation Dips to 21.88% in July, But Food Prices Remain Stubbornly High

Nigeria’s inflation rate showed a slight decline in July 2025, dropping to 21.88% from June’s 22.22%, according to the National Bureau of Statistics (NBS).

While this marks the second straight month of easing price pressures, analysts warn that the improvement is minimal and largely statistical—prices are still rising, just at a slower pace.

Year-on-year inflation fell sharply from 33.40% in July 2024, partly due to the “base effect”—comparison with last year’s exceptionally high prices. However, month-on-month inflation rose to 1.99% in July, up from 1.68% in June, signaling ongoing inflationary pressures.

Food inflation, a major concern for Nigerian households, eased to 22.74% annually but remains elevated. Monthly food costs continue to climb, driven by supply chain disruptions, insecurity, and extreme weather. Despite government interventions—like grain releases and farmer subsidies—structural challenges such as high transport costs and rural insecurity keep prices high.

The Central Bank of Nigeria (CBN) faces a dilemma: while the slight annual slowdown may justify holding interest rates, rising monthly inflation suggests underlying pressures persist. High borrowing costs (exceeding 30% for some businesses) risk stifling economic growth even as they aim to curb inflation.

For ordinary citizens, statistical declines offer little comfort. Shoppers are buying smaller quantities, swapping staples for cheaper alternatives, and stretching shrinking budgets. “Prices aren’t falling—they’re just rising slower,” said a Lagos trader. A teacher added, “My salary buys half what it did last year.”

With inflation expected to stay in double digits, analysts warn that festive demand may push prices higher. Long-term relief hinges on improved security for farmers, better infrastructure, and efficient supply chains—none of which are quick fixes.

While the dip in headline inflation is a positive sign, Nigeria’s battle against soaring costs—especially food—is far from over. The marginal decline masks deeper economic strains, leaving households and policymakers grappling with persistent challenges.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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