Nigeria’s Inflation Figure Drops to 15.15% After New CPI Method

Nigeria’s statistics agency says headline inflation eased in December 2025 after it introduced a re-based Consumer Price Index (CPI) series. The National Bureau of Statistics reported headline inflation of 15.5% year-on-year, down from 17.33% in November, while month-on-month inflation slowed to 0.54% from 0.68%.

The NBS says the CPI was re-based, meaning it updated the basket of goods and services and the weights used to reflect current spending patterns. That kind of change can shift the headline rate even if prices are still rising because the measurement framework differs. The report notes the agency provided a “link factor” to help users compare the old and new series.

According to the same release, food inflation was 10.84% year-on-year, while core inflation, which excludes volatile farm produce and energy, was 18.63% year-on-year. It also recorded a 12-month average inflation rate of 24.54%, compared with 25.23% in the previous period.

 A lower headline rate does not mean prices are falling. It means the pace of increase, as measured by the new method, is slower than before. Many households will still feel pressure because wages and income have not risen at the same pace as living costs. Businesses also continue to face higher input costs, logistics expenses, and FX-linked import prices.

 Investors and lenders watch inflation because it influences interest rates. If inflation continues to decline, it could support arguments for a less aggressive monetary stance later in the year. But the central bank will likely want to see consistent data, not one month, especially after a methodology shift.