Lagos: The IMPI Chairman, Dr. Omoniyi Akinsiju, in a statement on Wednesday, said the projection would be recorded, following consecutive declines that brought the figure down to 20.12 percent in August. Akinsiju highlighted that this trend represented the country’s longest spell of disinflation in nearly a decade, and it is expected that the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) may ease interest rates in response.
According to News Agency of Nigeria, Nigeria’s inflation rate has dropped steadily from 24.5 percent in January to 20.12 percent in August. Dr. Akinsiju described the 17.5 percent decline as the sharpest mid-year slowdown in over a decade. He noted that Nigeria’s disinflationary pattern in 2025 places it alongside 2017 and 2018 as rare years when consumer prices slowed after several years of steady increases.
‘Accordingly, Nigeria’s inflation story in 2025 is taking an unusual turn because, for the first time in nearly a decade, the country is witnessing a meaningful and sustained slowdown in consumer prices,’ Akinsiju remarked. He identified three key drivers of the inflation slowdown: the CBN’s tight monetary stance, relative stability in the foreign exchange market aided by oil receipts, remittances, and non-oil exports, as well as better harvests from food-producing regions.
Akinsiju projected that with the economic momentum, inflation could decline to 17 percent in December 2025, nearing the 15 percent target set by the federal administration. He suggested that the MPC might consider easing the policy rate by at least 50 basis points at its next meeting, and by up to 200 basis points before December. Additionally, a review of the cash reserve ratio (CRR) from 50 percent to 35 percent is expected to impact the cost of production, enhance business expansion, and create jobs due to cheaper credit and increased liquidity for banks.
On the corporate front, Akinsiju reiterated the recovery of major Nigerian companies after facing steep foreign exchange-related losses in 2023 and 2024, following the federal government’s decision to float the naira. He recalled that seven major consumer goods companies, including BUA Foods, Cadbury Nigeria, Nigerian Breweries, Dangote Sugar, and Nestl© Nigeria, reported a combined loss of N418 billion in Q1 2024, with cumulative losses rising to N867 billion over two years.
By the end of Q2 2025, these consumer goods companies returned to profitability with a combined pre-tax profit of about N264 billion. This turnaround was driven by currency stability and internal cost controls, Akinsiju concluded.
