Nigeria's Inflation Drops 20 Points in One Year

Nigeria just closed out 2025 with its lowest inflation rate in years, offering real relief to millions who've watched their buying power shrink month after month.

The country's inflation dropped to 15.15% in December 2025, down from a staggering 34.80% just one year earlier. That's nearly 20 percentage points of improvement in a single year, according to the National Bureau of Statistics.

The change marks a turning point for everyday Nigerians. Unlike 2024, when wild price swings made planning impossible, 2025 brought predictability back to household budgets. Food prices, which hit families hardest, are now rising at just 10.84% annually.

The numbers tell a story of gradual healing. After the statistics bureau updated its measurement methods in January 2025, inflation started at 24.48% and steadily declined each month. By November, it had dropped to 17.33%, then continued falling into year's end.

The improvement didn't come easy. Nigerians adapted by cutting costs, finding side income, and adjusting expectations. Many tech workers in Lagos, where local inflation ran higher than the national average, juggled extra gigs to make ends meet.

The Bright Side

This sustained decline signals something more valuable than a one-time dip: consistency. For the first time in years, families can budget without fearing surprise price jumps. Business owners can plan purchases. Workers can calculate what their paychecks will actually buy next month.

While prices remain higher than most would like, the trend line points in the right direction. Month after month, inflation kept falling throughout 2025, building confidence that the worst is behind them.

The stability matters most for young professionals and startup employees who've spent recent years watching transport costs rival their rent payments. Though wages haven't caught up to past price increases, at least future planning becomes possible again.

Economic experts note that predictability itself carries value. When people can trust tomorrow will look like today, they invest, plan, and build rather than just surviving paycheck to paycheck.

Nigeria's 2025 will be remembered not for shocking headlines, but for something better: boring, steady improvement that let people get back to living their lives.