Nigeria’s Inflation Finally Cools to 15.15% After a Brutal Year of Price Shocks
- Nigeria's inflation rates fell to 15.15% in December 2025, a significant drop from 34.80% in 2024
- Food inflation moderated to 10.84%, reflecting improved supply conditions but still impacting household budgets
- Living costs remain high, with salaries lagging behind prices, pushing Nigerians to adapt their spending habits
Nigeria closed 2025 with headline inflation at 15.15 per cent, marking one of the sharpest year-on-year slowdowns in recent history and signalling a fragile return to price stability after a turbulent period of economic stress.
According to the National Bureau of Statistics (NBS), the December 2025 inflation figure represents a 19.65-percentage-point drop from the 34.80 per cent recorded in December 2024.
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While prices remain high across food, transport and essential services, 2025 will be remembered as the year inflation stopped accelerating at a frightening speed.
From Shocks to Stability
Unlike 2024, which saw inflation spiral to record highs amid currency pressures and supply disruptions, 2025 was defined by relative predictability.
The year began with inflation at 24.48 per cent in January, following a rebasing of the Consumer Price Index and a change in methodology by the NBS.
The rebasing replaced the outdated 2009 reference period with a more current economic structure.
According to the NBS, the exercise aligned price and weight reference periods with present realities, updated the composition of goods and services, revised item weights and improved overall measurement accuracy.
Since then, inflation followed a gradual downward trend, easing month after month to settle at 15.15 per cent in December.
What the latest numbers show
The NBS said the Consumer Price Index rose to 131.2 points in December 2025, up slightly from 130.5 points in November.
Despite the monthly increase, year-on-year inflation continued to slow, dropping from 17.33 per cent in November to 15.15 per cent in December.
Food inflation, a major driver of household hardship, also moderated to 10.84 per cent in December.
This easing reflects improvements in supply conditions and a slowdown in price surges that defined earlier months.
Still, moderation does not mean relief for many Nigerians.
Living costs still squeeze paychecks
Beyond the headline numbers, inflation continues to shape daily life in painful ways.
Salaries and wages have not adjusted at the same pace as prices, leaving households to absorb the gap through reduced consumption and lifestyle changes.
For many tech workers and startup employees, especially in urban centres, transport costs now compete with rent, while food expenses reset monthly budgets.
In Lagos, Nigeria’s startup hub, inflation stood at 17.5 percent, above the national average, further intensifying pressure on workers.
Side gigs, delayed life plans and lower living standards have become quiet coping strategies for young professionals navigating a tighter economy.
A turning point, not a victory
While the December figures suggest inflationary pressures are easing, the impact of the past two years has already reshaped spending habits and expectations.
For many Nigerians, daily life has adjusted to economic shocks that once felt extraordinary but now feel routine.
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The slowdown in inflation offers cautious optimism, but real relief will depend on income growth, sustained price stability and policies that translate macroeconomic gains into household breathing room.
New prices emerge as tomato production breaks 12-year records
Legit.ng earlier reported that food prices showed mixed movements across major Nigerian markets in January, with notable relief for staple grains such as rice, beans and garri, while cooking oils and processed foods continued to climb, limiting the overall impact on household food budgets.
A comparison of prices between December 2025 and early January 2026 indicates improved supply conditions across several regions.
-Analysts link the moderation to peak harvest flows, higher domestic production and market adjustments following government interventions.
Source: Legit.ng
