Nigeria’s headline inflation rate dropped to 14.45 percent in November 2025, extending its steady decline for the eighth consecutive month and marking the lowest level recorded in more than five years. The slowdown, confirmed in the latest Consumer Price Index report released by the National Bureau of Statistics, offers cautious relief to households and businesses after a prolonged period of steep price increases.
Key Highlights:
Headline inflation eased to 14.45 percent in November from 16.05 percent in October 2025.
Month on month inflation rose slightly to 1.22 percent, up from 0.93 percent in October.
Food inflation declined sharply to 11.08 percent year on year from 13.12 percent in October and 39.93 percent in November 2024.
Core inflation, which excludes food and energy, moderated to about 18.04 percent.
Urban inflation fell to 13.61 percent, with Rivers State recording the highest rate at 17.78 percent and Plateau State the lowest at 9.13 percent.
The NBS report shows that the year on year headline inflation rate fell by 1.6 percentage points compared with October. When measured against November 2024, when inflation stood at 34.60 percent, the current figure represents a sharp reduction of 20.15 percentage points. Food and non alcoholic beverages remained the largest contributor to inflation, accounting for 5.78 percentage points of the headline rate. Other pressure points included housing, water, electricity, gas and other fuels, transport, and clothing and footwear.
The sustained slowdown reflects a mix of policy shifts and structural changes. Inflation surged in 2024 following the removal of fuel subsidies, depreciation of the naira, and higher global commodity prices. In 2025, a major turning point came with the rebasing of the Consumer Price Index by the NBS, which updated the base year from 2009 to 2024. The adjustment aligned inflation measurement with current consumption patterns and contributed to the sharp fall in reported rates.
Additional factors supporting the decline include improved foreign exchange stability, modest appreciation of the naira, better harvests that increased food supply, and tighter monetary policy by the Central Bank of Nigeria. Interest rate hikes introduced earlier in the year appear to have eased demand pressures across key sectors.
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President Bola Tinubu’s administration had set a target of reducing inflation below 15 percent by the end of 2025 under its Restoration Budget presented last December. The November outcome meets that goal ahead of schedule and strengthens the government’s claim of early progress on macroeconomic stability. Analysts say the figure could give the CBN room to consider policy adjustments in 2026 if the trend holds.
Despite the improved headline numbers, economists warn that the relief may still feel distant for many Nigerians. Prices of essential goods remain high, and month on month increases in some categories point to lingering pressure, particularly in food items such as dried tomatoes, cassava products, eggs, and onions. Structural challenges including insecurity in farming areas, weak infrastructure, and heavy import dependence continue to weigh on prices.
As Nigeria approaches the festive season and the start of a new year, the inflation slowdown has introduced a note of optimism. Whether it translates into lasting relief will depend on sustained reforms in agriculture, energy supply, fiscal management, and currency stability.
