Nigeria’s inflation rate has dropped to 22.97% in May 2025, marking a notable decline from the 23.40% recorded in April, according to the latest data released by the National Bureau of Statistics (NBS).
The NBS report, published on Saturday, highlights a gradual easing of inflationary pressures across the country. This decline, though modest, is being viewed by analysts as a potential sign of improving economic stability, following months of persistently high inflation driven by food prices, fuel subsidy removal, and currency volatility.
Despite the overall drop, the food inflation rate remained elevated at 31.83%, slightly down from 33.05% in April. The high cost of food continues to weigh heavily on household incomes, with prices of staples like yam, rice, and tomatoes still soaring in many markets.
Core inflation, which excludes volatile agricultural produce and energy costs, also recorded a mild drop, easing to 20.70% in May from 21.20% in April.
Economists have attributed the recent decline to tighter monetary policies by the Central Bank of Nigeria (CBN), including interest rate hikes and interventions in the foreign exchange market aimed at stabilising the naira.
While the decline offers some relief, financial experts warn that inflation remains significantly above the Central Bank’s target range, and sustained policy discipline will be required to achieve further reductions.
The federal government has reiterated its commitment to implementing structural reforms under the Renewed Hope Agenda to address the root causes of inflation and promote economic resilience.
