FX.co ★ Nigeria Inflation Rate at Over 5-Year Low of 15.2%

In December 2025, Nigeria's annual inflation rate slowed to 15.15%, marking the lowest rate since November 2020. This is a decrease from the revised 17.33% recorded in November, largely due to a revision in the calculation method by the statistics office. The Consumer Price Index (CPI) now uses the 2024 average over 12 months as the reference index (set at 100) instead of being pegged to December 2024 alone. This change mitigates the risk of artificially inflating year-on-year figures. Under the older methodology, inflation was expected to soar to 31.2% in December. This adjustment follows a shift in the base year from 2009 to 2024, announced earlier in 2025. Specifically, food inflation, which represents the largest portion of the inflation basket, decreased for the fifth consecutive month to 10.84% in December, down from a revised 14.21% in November. Meanwhile, core inflation, excluding volatile items such as agricultural products and energy, declined for the sixth straight month to 18.63%, compared to the revised 20.59% in November. On a monthly scale, consumer prices increased by 0.54%, following a 1.22% rise in the preceding month.