Nigeria Records First Food Deflation in 13 Years, Inflation Drops Sharply

Nigeria's National Bureau of Statistics (NBS) reports the country's first month-on-month food deflation in over 13 years, with headline inflation dropping sharply to 18.02% in September 2025 from 20.12% in August. The decline is mainly attributed to a 16.87% moderation in food inflation in September compared to 21.87% in August.

Factors such as seasonal trends, recent inflation basket rebasing, and improved food supply due to the harvest season contributed to the decrease in food prices. Despite this positive development, experts warn that Nigeria's broader inflation outlook remains fragile, with the IMF projecting annual inflation at 23% due to structural challenges in high transport and energy costs.