Nigeria's Food Inflation Reaches 10-Year Low Amid Price Declines for Staple Items
Nigeria has achieved a significant economic milestone by recording its lowest food inflation rate in a decade, providing much-needed relief to households grappling with high living costs. According to the National Bureau of Statistics (NBS), food inflation plummeted to 8.89% in January 2026, marking the first single-digit figure since May 2015, when it was 9.78%. This sharp decline aligns with earlier projections from analysts, signaling a major turnaround after years of persistent double-digit increases that strained budgets nationwide.
Government Policies and Naira Stability Drive Price Relief
The drop in food inflation is largely attributed to federal government policy adjustments, including import waivers on selected food items aimed at easing supply constraints and reducing logistics bottlenecks. Improved foreign exchange stability and a steadier naira have also played crucial roles in moderating food costs. For many Nigerians, this shift has translated into noticeable reductions in staple food prices, with dealers across major markets quoting lower rates for essential items such as rice, beans, maize, palm oil, groundnut oil, eggs, water yams, green peas, and soybeans.
These items form a significant part of the average Nigerian diet, making the decline particularly impactful for families. The NBS reported a month-on-month deflation of 6.02% in January, indicating a broad-based decrease in food prices and suggesting genuine consumer relief rather than just slower price growth.
Annual Trends and Regional Disparities Highlight Economic Shifts
Beyond the monthly figures, the broader annual trend shows substantial improvement. The average annual rate of food inflation for the twelve months ending January 2026 stood at 20.29%, representing a sharp 18.18 percentage-point drop compared to the 38.47% recorded in January 2025. Economists believe this cooling trend could persist if exchange rate stability and improved supply chains are sustained, bringing Nigeria closer to regional peers like Kenya and Ghana, which posted food inflation rates of 7.8% and 3.9% respectively in January 2026.
However, inflationary pressures varied significantly across states, highlighting regional differences in supply chains, agricultural output, and distribution networks. Kogi recorded the highest food inflation rate at 19.84%, followed by Benue at 18.38% and Adamawa at 17.29%. In contrast, Ebonyi posted the lowest increase at 1.69%, with Abia at 3.23% and Imo at 3.74%.
Headline Inflation and Market Survey Insights
Headline inflation also maintained its downward trajectory, easing to 15.10%. A breakdown of the data reveals that while food prices have cooled significantly, other sectors of the economy are still experiencing moderate cost pressures. For instance, food and non-alcoholic beverages increased by 6.04% year-on-year, housing, water, electricity, gas, and other fuels rose by 1.27%, transport climbed 1.61%, restaurants and accommodation services recorded a 1.95% increase, and health services rose by 0.91%.
A market survey by the News Agency of Nigeria (NAN) in the Federal Capital Territory (FCT), Abuja, showed that prices of several staple food items have continued to ease following the end of the festive season. While many essential items recorded notable price reductions, some commodities remained expensive. Residents urged the government to ensure the decline in food inflation is sustained, expressing hope for continued price stability and improved purchasing power after a prolonged period of economic strain.
