In a welcome development for Nigeria’s economy, the National Bureau of Statistics (NBS) has announced a notable decline in the country’s headline inflation rate, which eased to 22.97% in May 2025, down from 23.71% in April.
According to the NBS report released on Monday, the month-on-month inflation rate also slowed, decreasing to 1.53% in May from 1.86% recorded in the previous month. This indicates a slower pace in the general rise of prices across goods and services.
Year-on-year, the inflation rate fell significantly by 10.98 percentage points when compared to the 33.95% recorded in May 2024 — marking one of the steepest annual declines in recent years.
The NBS attributed the moderation in inflation to reduced price pressures in several key sectors, including agricultural produce, utilities, clothing, and healthcare.
Food inflation, which has been a major contributor to overall inflation, also saw a slight drop, dipping to 21.14% in May from 21.16% in April. However, on a month-to-month basis, food inflation ticked up marginally to 2.19%, from 2.06% in April.
The bureau noted that part of the decline is due to base-year effects and adjustments from inflation rebasing, which contributed to a more favorable year-on-year comparison.
As the nation continues to navigate economic reforms and global pressures, analysts suggest that sustained improvements in local production and supply chains will be critical to maintaining the current momentum in inflation control.
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