Nigeria’s Inflation Eases Slightly to 14.63% as Food Prices Remain High

Nigeria’s headline inflation rate slowed slightly in September to 14.63% year-on-year, down from 15.39% in August, the National Bureau of Statistics said. Food inflation was almost flat at 19.59%, compared with 19.57% a month earlier, keeping cost-of-living pressure on many citizens months before a national election.

The data, released on Thursday, October 15, shows consumer inflation remains stuck around 15% in annual terms. The National Bureau of Statistics said food inflation was little changed. The figures are a concern for households and a test for President Bola Tinubu ahead of January’s election, when he will seek a final four-year term.

The Common Man Is Suffering

Michael Udoariri, a 44-year-old who works in an insurance company and is a father of three, said the pressure is real. “The common man is suffering. Everything has sky-rocketed,” he said at a bus stop in Lagos while waiting to go to work. He said soaring fuel costs had forced him to stop driving and switch to public transport.

Central Bank Cut Rates

The central bank surprised investors last month with a 350-basis-point interest rate cut to 23%. It said market rates had diverged from its benchmark rate and previous tightening measures had proven effective.

Tinubu took office in 2023 and made a series of economic reforms, including cutting petrol subsidies and devaluing the currency, to try to lift economic growth and bolster public finances. But those reforms also spurred a cost-of-living crisis.

Growth Picks Up But Below Target

Economic growth has picked up, coming in at about 4.4% year-on-year in the second quarter. It remains well below the 7% annual rate Tinubu has targeted by 2027.

For Nigerian consumers and businesses, the slight easing in headline inflation offers little relief. Food inflation near 20% and higher fuel costs continue to squeeze household budgets and operating costs.