Nigeria has recorded a dramatic slowdown in its inflation rate, closing the year 2025 at 15.15 per cent. This marks a significant retreat from the painful highs of the previous year and signals a tentative step towards price stability after a period of severe economic pressure.
A Historic Slowdown in Price Increases
According to the latest data released by the National Bureau of Statistics (NBS), the headline inflation figure for December 2025 stood at 15.15 per cent. This represents a monumental drop of 19.65 percentage points from the 34.80 per cent recorded in December 2024. The year-on-year deceleration is one of the most pronounced in the nation's recent economic history.
While the cost of living remains elevated across key sectors like food, transport, and essential services, 2025 will be remembered as the year the relentless acceleration of inflation was finally arrested. The Consumer Price Index (CPI) rose slightly to 131.2 points in December from 130.5 points in November, but the critical year-on-year trend continued its downward path.
Food Inflation Moderates, But Relief Is Uneven
A key component of the inflation basket, food inflation, also showed signs of easing. It moderated to 10.84 per cent in December 2025. Analysts attribute this moderation to improved supply conditions, peak harvest periods, higher domestic production, and the effects of various government market interventions.
However, the moderation in the headline and food inflation rates does not translate to immediate relief for the average Nigerian. The cumulative effect of past price shocks has deeply eroded purchasing power. Salaries and wages have largely failed to keep pace with the historic price surges, forcing households to make difficult adjustments.
The Daily Reality: High Costs Reshape Lives
Beyond the statistics, the impact of inflation continues to shape daily existence. In urban centres like Lagos, Nigeria's commercial and startup hub, the situation is even more acute, with inflation recorded at 17.5 per cent, above the national average.
For many, especially young professionals and tech workers, transport costs now rival housing expenses, while food budgets are constantly being revised upwards. The economic strain has popularised coping mechanisms such as taking on side gigs, delaying major life plans, and accepting a lower standard of living as the new normal.
The inflation slowdown in 2025 followed a year that began with a rate of 24.48 per cent in January. This starting point was set after the NBS rebased the Consumer Price Index, updating the reference period from 2009 to better reflect the current structure of the economy and improve measurement accuracy. From that point, a gradual monthly decline was observed throughout the year.
While the December 2025 figures offer a glimmer of cautious optimism, analysts warn it is a turning point, not a victory. The deep scars left by the preceding years of high inflation have permanently altered spending habits and consumer expectations. For genuine economic relief to be felt, this macroeconomic stability must be coupled with meaningful income growth and policies that directly improve household financial breathing room.
