Nigeria's inflation eases to three-year low of 18.02%, prompting historic interest rate cut

Nigeria’s headline inflation rate fell significantly to 18.02% in September 2025, its lowest point in three years, according to data released by the National Bureau of Statistics (NBS) on October 15.

This marks a dramatic decline from the 32.70% recorded just one year prior in September 2024, confirming a sustained disinflation trend.

The September figure, down from 20.12% in August, is the first time inflation has dipped below 18.5% since June 2022.

The slowdown was driven by reduced price pressures across major spending categories.

The most significant drop was in food and non-alcoholic beverages, which fell to 7.21% from 8.05% in August.

Other sectors also with reliefs restaurant and accommodation services, which fell to 2.33%; transportation declined to 1.92%, housing, water, and electricity eased to 1.52%

Analysts attribute this broad moderation to a stabilizing economy after periods of volatility caused by currency and energy shocks.

The government’s earlier structural reforms—including the removal of fuel subsidies, foreign exchange market liberalization, and temporary import tax suspensions—are now contributing to the easing of consumer cost pressures.

In a direct response to the positive trend, the Central Bank of Nigeria (CBN) cut its monetary policy rate for the first time in five years, reducing it by 50 basis points to 27%. The bank stated the move is intended to support economic growth and solidify the recent gains in controlling inflation.

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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