Nigeria’s Inflation Slows to 14.45% in November 2025, Signalling Moderation in Price Pressures
Nigeria Inflation Eases to 14.45% in November 2025 as Price Pressures Slow
Nigeria recorded a notable decline in consumer price growth in November 2025, with headline inflation easing to 14.45%, down from 16.05% in October. The latest data from the National Bureau of Statistics (NBS) highlights a reduction in price pressures across both urban and rural areas, suggesting a gradual stabilisation of the economy following months of elevated inflation.
Urban and Rural Inflation Dynamics
The NBS data show a differentiated inflation trajectory between urban and rural areas. Urban inflation decreased to 13.61% year-on-year in November 2025, a notable reduction compared to 37.10% recorded in the same month of 2024. Every month, urban prices increased by 0.95%, slightly lower than the 1.14% observed in October 2025. The 12-month average for urban inflation now stands at 20.80%, down from 35.07% year-on-year.
Rural areas also experienced moderation, with inflation falling to 15.15% in November 2025 from 32.27% in November 2024. The data underscores a general slowdown in price pressures nationwide, though rural markets continue to face challenges from agricultural commodity fluctuations.
Food and Core Inflation Trends
Food inflation, a major driver of household expenses, stood at 11.08% year-on-year in November 2025, significantly lower than the 39.93% recorded in November 2024. The decline is partly due to changes in the calculation base year, but also reflects improved supply conditions in several key staples. Nevertheless, certain essential food items, including dried tomatoes, cassava, ground pepper, eggs, and fresh onions, continued to record price increases, indicating persistent localised pressures.
Core inflation, which excludes volatile agricultural and energy components, remained elevated at 18.04%, suggesting that underlying non-food price pressures still require policy attention.
Policy Targets and Implications
In December 2025, President Bola Tinubu reaffirmed the government’s commitment to reducing inflation from 34.6% to 15% by year-end, as outlined in the 2025 Appropriation Bill. The November moderation demonstrates progress toward this goal, although analysts have noted that structural factors, including currency fluctuations, energy costs, and supply chain disruptions, could challenge the sustainability of this trajectory.
Monetary and fiscal authorities are expected to continue monitoring inflation indicators closely, with targeted interventions aimed at stabilising food prices, ensuring currency stability, and maintaining liquidity in the financial system.
Economic and Market Implications
Easing inflation provides a more predictable environment for businesses, investors, and households. Lower price volatility can support consumer confidence, improve planning for private sector investments, and facilitate interest rate decisions by the Central Bank of Nigeria. Real estate, manufacturing, and trade sectors, in particular, may benefit from reduced input cost pressures, enabling more sustainable growth.
Conclusion
While headline inflation remains above pre-2023 levels, the November 2025 data signals a meaningful moderation in price pressures across Nigeria. Maintaining this trend will require sustained policy measures and structural improvements to supply chains, energy provision, and currency stability. For investors, businesses, and policymakers, these developments suggest cautious optimism, with potential for improved economic predictability in the coming months.
