By Emmanuel Kwada
The National Bureau of Statistics (NBS) has reported a notable decline in Nigeria’s headline inflation rate, which dropped to 16.05% in October 2025, down from 18.02% in September 2025. This easing of price pressures, announced earlier today, has been hailed as a positive step toward economic stability in the West African nation.
The latest figures, released by the NBS indicate a gradual slowdown in the cost of goods and services. On a month-on-month basis, the headline inflation rate stood at 0.93% in October, a slight increase of 0.21% from September’s 0.72%. This data reflects a broader trend of improving market conditions, supported by targeted economic interventions and a stabilizing foreign exchange market.
The report also provided insights into specific sectors. The food inflation rate recorded a year-on-year figure of 13.12%, with a month-on-month decline of 0.37%, reversing the -1.57% recorded in September.
This uptick was driven by rising prices of essential items such as fresh onions, oranges, pineapples, shrimp, groundnuts, vegetables, and various meats, including goat meat and cow tail.
The core inflation rate, which excludes farm produce and energy, stood at 18.69% year-on-year, with a month-on-month increase of 1.42%, up from 1.42% in September. This suggests persistent underlying price pressures despite the overall decline in headline inflation.
Significant regional disparities were observed in the inflation rates across Nigeria’s states. Ekiti recorded the highest year-on-year inflation rate at 20.14%, while Bauchi saw the slowest rise at 9.09%.
On a month-on-month basis, Niger led with a 4.80% increase, while Adamawa experienced the slowest rise at -3.10%. Urban areas reported a year-on-year inflation rate of 15.65%, with a month-on-month increase of 1.14%, compared to rural areas, which saw 15.86% year-on-year and a modest 0.45% month-on-month.
The NBS data suggests a cautiously optimistic outlook for Nigeria’s economy in the coming months. With the twelve-month average urban inflation rate dropping to 22.68% and rural inflation to 20.81% significant declines from October 2024 figures of 34.52% and 30.24%, respectively; there is hope for continued stabilization. Nonetheless, experts urge proactive strategies to mitigate geopolitical and climate-related risks as the nation navigates its economic recovery.
