Nigeria’s inflation rate has fallen for the sixth consecutive month, reaching 18.02 percent in September 2025, its lowest level in three years a development the Central Bank of Nigeria (CBN) says signals renewed economic stability and policy effectiveness.
The CBN Governor, Dr. Olayemi Cardoso, announced the figures in Washington, D.C., on Thursday, citing fresh data from the National Bureau of Statistics (NBS). According to him, both core and food inflation slowed considerably, with core inflation at 19.53 percent and food inflation easing to 16.87 percent, compared to previous highs recorded earlier in the year.
Cardoso described the sustained decline as a “decisive turnaround” from the inflationary peak of 34.19 percent in June 2024, attributing the improvement to bold monetary policy measures and improved coordination between fiscal and monetary authorities.
“This decline reflects the impact of the apex bank’s decisive policy actions to restore price stability and anchor expectations,” Cardoso stated.
He recalled that, in response to rising inflation last year, the CBN had embarked on a sustained tightening cycle — raising the Monetary Policy Rate (MPR) from 18.75 percent to 27.50 percent and adjusting the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and 16 percent for merchant banks.
At its September Monetary Policy Committee (MPC) meeting, the Bank took a cautious step by easing the MPR slightly to 27.00 percent and reducing the CRR for commercial banks to 45 percent, while maintaining its anti-inflation stance.
Cardoso said these measures were reinforced by key reforms in the foreign exchange market, including the unification of exchange rates and enhanced transparency mechanisms designed to improve market efficiency and price discovery.
He added that the Naira had stabilised, with the spread between the official and Bureau De Change (BDC) rates narrowing to below two percent. Improved liquidity in the foreign exchange market, he said, had reduced imported inflation pressures and strengthened overall price stability.
“Foreign reserves remain robust at over $43 billion, providing more than eleven months of import cover and backed by sustained forex inflows,” Cardoso disclosed.
The CBN Governor reaffirmed the Bank’s commitment to sustaining the disinflation trend through a combination of exchange rate stability, improved food supply chains, and continued monitoring of petroleum product prices.
He emphasised that a stable exchange rate, better agricultural output, and enhanced coordination across government agencies would be key to maintaining the downward trajectory in inflation in the coming months.
Cardoso also assured Nigerians that the Bank’s tightening measures were designed not only to fight inflation but also to restore investor confidence and strengthen purchasing power.
“We remain fully committed to ensuring that the current disinflation trend is durable and consistent with the CBN’s primary mandate of maintaining price stability,” he said.
He made these remarks at the sidelines of the IMF–World Bank Annual Meetings in Washington, where Nigeria’s economic reforms and fiscal discipline were among the key topics of discussion.
Cardoso reiterated his optimism that Nigeria’s economy was on a firm recovery path, citing improved investor confidence, steady foreign inflows, and strong reserves as evidence that government reforms were yielding results.
