Nigeria's inflation drops to 15.15% in December, lowest in a year
Nigeria's headline inflation fell sharply to 15.15% in December 2025, down from 17.33% in November and far below the 34.80% recorded in December 2024. The National Bureau of Statistics (NBS) announced the figure after a methodological review, aligning with the IMF and ECOWAS standards by using a twelve-month average base year instead of a single month.
The slowdown was driven by a sharp decline in food inflation, which dropped to 10.84% from 39.84% a year earlier. Core inflation also eased to 18.63%. The NBS attributed the drop to lower prices of staples like tomatoes, garri, eggs, and onions. On a month-to-month basis, overall prices rose by only 0.54%, indicating easing short-term pressures.
However, the annual average inflation rate remained high at 23.01%, showing cumulative pressure on your wallet over the past year. At the state level, Abia (19.03%), Ogun (18.80%), and Katsina (18.66%) recorded the highest rates, while Sokoto had the lowest at 8.61%. Food remains the biggest contributor, followed by transport and housing costs.
With the rebasing exercise, November's inflation was revised up to 17.33% from the initial 14.45%, highlighting how base effects can distort readings. The question now is whether this moderation is a temporary relief or the start of a sustained drop in prices that will ease the cost of living for Nigerians.