In a surprising turn of events, Nigeria’s inflation rate has dipped to its lowest level since 2025, despite a persistently rising energy market. According to a report by Nigeria Business published on Google News on October 15, 2026, the consumer price index (CPI) decreased by 0.2% month-on-month (m/m) in September, marking the fifth consecutive drop. This latest figure indicates a year-on-year (y/y) inflation rate of 9.5%, the lowest since January 2025. The report attributes the decline to a slowdown in food price growth and reduced transportation costs. However, it is important to note that the cost of energy products, including fuel and electricity, continues to climb. The Central Bank of Nigeria (CBN) has not said when the facility began operating, but the bank has been implementing several measures to curb the effects of rising energy prices on inflation. These measures include foreign exchange interventions and efforts to boost food production. The impact of these actions is yet to be fully realized, but experts predict that the CPI may continue to trend downward in the coming months. As Nigeria strives to navigate these economic challenges, it remains to be seen whether the declining inflation rate will translate into increased consumer spending and economic growth. The low inflation rate is a positive development for Nigerian consumers, but the persisting energy price hikes could still pose a threat to the country’s economic recovery.
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