Nigeria’s Inflation Cools To 20.12% in August

Nigeria’s inflation eased further in August 2025, with headline inflation dropping by 176bps to 20.12% from 21.88% in July.

This marks the strongest moderation since the rebasing, reflecting a mix of stable exchange rates, harvest inflows, and lower energy prices.

Regional Trends at a Glance

Inflation patterns across states showed sharp contrasts. The Northeast recorded the slowest food inflation at 15.25%, with Yobe posting single-digit growth.

The Southeast also eased significantly, while Ekiti posted the highest headline inflation at 28.17%.

Borno still led in food inflation at 36.67%, though lower than July’s 55.6%.

What Lies Ahead

The outlook for September points to a continuation of the disinflationary trend. Stable FX, ongoing harvest inflows, and softer oil prices are expected to sustain the momentum. However, risks remain.

Monetary policy shifts could pressure capital flows, while Nigeria’s structural challenges, which include food supply shocks, insecurity in producing states, and dependence on oil for foreign exchange could slow progress.

P.S: The August Inflation Report is also available for download below.