Nigeria’s headline inflation rate fell for the eighth consecutive month in November, official data has shown, as slowing food prices provided relief to consumers in Africa’s most populous nation.
Consumer inflation stood at 14.45 percent year on year last month, down from 16.05 percent in October, according to the National Bureau of Statistics.
Food inflation, a major driver of overall price rises, slowed to 11.08 percent in November from 13.12 percent in October.
The gradual easing follows years of surging prices that triggered a cost-of-living crisis, with headline inflation peaking near 35 percent in December 2024. Analysts say revisions to the statistics office’s base year and adjustments to the weighting of items in the consumer price basket contributed to the slowdown.
Nigeria’s central bank last month left its benchmark interest rate unchanged, stating that it aimed to bring inflation down further while supporting economic growth.
Background to Nigeria’s inflation
Inflation in Nigeria has been a persistent challenge, driven by food and energy costs, currency volatility, and fiscal pressures. High inflation has strained household budgets and weighed on consumer confidence in the country of over 220 million people.
The central bank has deployed a mix of monetary tools to stabilise prices, including interest rate adjustments, liquidity management and forex interventions. While inflation has eased, it remains above the central bank’s target range of 6–9 percent, leaving policymakers cautious about further monetary policy moves.
Economists say continued moderation in food prices and improvements in supply chains will be critical to sustaining the downtrend, even as external shocks and global commodity price swings continue to pose risks.
Nigeria has faced persistent inflationary pressures for much of the past decade, driven largely by high food and energy costs, currency volatility, and fiscal imbalances. Rapid population growth, infrastructure gaps, and supply-chain bottlenecks have compounded the pressure on consumer prices, particularly in staple goods.
Headline inflation peaked near 35 percent in December 2024, reflecting a combination of soaring global commodity prices, currency depreciation, and adjustments to government subsidies. Following that peak, the National Bureau of Statistics revised its base year and reweighted the consumer price basket, which contributed to a downward adjustment in reported inflation figures.
Food inflation, which typically accounts for more than half of household expenditures, has been a key driver of overall price movements. Recent moderation in agricultural prices, coupled with improved domestic harvests and import supply, has helped ease the inflationary trend.
The Central Bank of Nigeria (CBN) has deployed a mix of monetary tools to stabilise prices, including maintaining a high benchmark interest rate, managing liquidity in the banking system, and intervening in the foreign exchange market to support the naira. Policymakers have stressed the need to balance inflation control with economic growth, especially as Nigeria seeks to expand investment and employment opportunities.
Despite the recent easing, inflation remains above the CBN’s target range of 6–9 percent, leaving households sensitive to price shocks and creating challenges for fiscal and monetary planning. Analysts note that external shocks such as global oil price swings, supply disruptions, and adverse weather events could still reverse recent gains.
