Nigeria’s inflation rate has declined for the fourth consecutive month, with the National Bureau of Statistics (NBS) reporting a drop to 21.8% in July 2025, down from 22.22% in June.
The latest Consumer Price Index (CPI) report highlights continued progress in curbing inflation this year. However, on a month-on-month basis, the headline inflation rate rose slightly to 1.99% in July, up from 1.68% in June.
According to the NBS, core inflation—which excludes volatile items such as food and energy—stood at 21.33% year-on-year, a notable decrease from 27.47% in July 2024.
Food inflation, a key concern for households, was 22.74% year-on-year in July. On a monthly basis, food prices increased by 3.12%, a modest drop from the 3.25% recorded in June. Major contributors to the CPI include food and non-alcoholic beverages, restaurant and accommodation services, and transportation.
Mixed Reactions to Economic Reforms
Despite the positive trend in inflation data, public sentiment remains divided over the economic reforms introduced by President Bola Tinubu since taking office in May 2023. Many citizens blame the policies for rising living costs, leading to nationwide protests—most notably the #EndBadGovernance hunger demonstrations in August 2024, which drew widespread attention.
On the other hand, international stakeholders have shown support. Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), commended the Tinubu administration during a recent meeting.
“We think the President and his team have worked hard to stabilise the economy, and you cannot improve an economy unless it’s stable,” Okonjo-Iweala stated. “The reforms are in the right direction. What is needed next is growth.”
She emphasized the need for a robust social safety net to cushion the effects of the reforms on vulnerable populations, while also calling for policies that promote job creation and economic expansion.
“The next step is building that safety net and focusing on growth so more Nigerians can benefit from the changes,” she added.
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