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Inflation Rate Slows, First Time in 3 Years, to 18.02%

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Nigeria’s inflation rate eased by 2.1 percentage point to 18.02 percent in September 2025 from 20.12 percent in August 2025.

This is the first time in three years that the nation’s inflation rate fell below 20 percent. The rate also represents the 6th consecutive month decline since April 2025.

The National Bureau of Statistics, NBS, disclosed this Wednesday, in its Consumer Price Index, CPI, and Report for September 2025.

Meanwhile, economy experts and analysts have commended the easing, though noted that the consumer purchasing power is still on the decline, and that the rate is still far from the Central Bank of Nigeria, CBN’s long run target of 9 %.

The NBS report stated: “In September 2025, the Headline inflation rate eased to 18.02 percent relative to the August 2025 headline inflation rate of 20.12 percent.

“Looking at the movement, the September 2025 Headline inflation rate showed a decrease of 2.1 percent compared to the August 2025 headline inflation rate.

“In addition, on a year-on-year basis, the headline inflation rate was 14.68% lower than the rate recorded in September 2024 (32.7 percent).

“This shows that the headline inflation rate (year-on-year basis) decreased in September 2025 compared to the same month in the preceding year (i.e., September 2024), though with a different base year, November 2009 = 100.

“However, on a month-on-month basis, the headline inflation rate in September 2025 was 0.72 percent, which was 0.02 percent lower than the rate recorded in August 2025 (0.74 percent).

“This means that in September 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in August 2025.”

Food inflation also declined by 5.0 percentage points to 16.87 percent in September 21.87 percent in August 2025 as a result of decline in the average prices of maize (corn) grains, garri, beans, millet, potatoes, onions, eggs, tomatoes, fresh pepper etc.

“The food inflation rate in September 2025 was 16.87 percent on a year-on-year basis.

“This was 20.9 percent points lower compared to the rate recorded in September 2024 (37.77 percent).

“However, on a month-on-month basis, the food inflation rate in September 2025 was -1.57 percent, down by 3.22 percent compared to August 2025 (1.65 percent.

According to NBS report, food inflation on a Year-on-Year (YoY) basis was highest in Ekiti (28.68%), Rivers (24.18%), Nasarawa (22.74%) while Bauchi (2.81 percent), Niger (8.38 percent), and Anambra (8.41 percent) had the slowest rise in food inflation YoY .

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Sachet Alcohol Ban Suspended, Orders NAFDAC to Stop Enforcement Activities

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The Federal Government has ordered the National Agency for Food and Drug Administration and Control, NAFDAC, to immediately halt all enforcement actions regarding the ban on sachet alcohol and 200ml PET bottle products.

The offices of the Secretary to the Government of the Federation, OSGF, and National Security Adviser, ONSA, in a joint intervention, cited grave concerns over economic stability and potential security threats as reasons for the directive.

The statement warned that continued enforcement, in the absence of a fully implemented National Alcohol Policy, could “destabilize communities, worsen unemployment, and trigger avoidable security challenges”.

According to the statement signed by Terrence Kuanum, Special Adviser on Public Affairs to the SGF, the government clarified that while the National Alcohol Policy has been signed by the Federal Ministry of Health under the direction of President Bola Tinubu, NAFDAC must refrain from sealing factories or warehouses until the policy is fully operationalized.

The statement emphasized that the current “de facto banning” of the products without a harmonized framework is creating significant disruptions.

“The continued sealing of warehouses and de facto banning of sachet alcohol products is already creating economic disruptions and poses a growing security threat, particularly given the impact on employment, supply chains, and informal distribution networks across the country,” the statement warned.

The statement further revealed that the decision was influenced by a correspondence from the House of Representatives Committee on Food and Drugs Administration and Control, dated November 13, 2025.

The letter, signed by Deputy Chairman Uchenna Harris Okonkwo, highlighted existing National Assembly resolutions that cautioned against the proposed ban.

Reaffirming a previous suspension issued in December 2025, the statement stated the need to review legislative, public health and economic factors before a final decision is reached.

“Accordingly, all actions, decisions, or enforcement measures relating to the ongoing ban on sachet alcohol are to be suspended pending the final consultations and implementation of the National Alcohol Policy and the issuance of a final directive,” the statement emphasized.

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Naira Appreciate Against US Dollar in Continuum

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The naira continued appreciation against the United States dollar at the official foreign exchange on Tuesday.

Central Bank of Nigeria data showed that the Naira further firmed up to N 1,351.02 against the dollar on Tuesday, up from N 1,354.26 traded the previous day.

This means that on a day-to-day basis the Naira gained N3.24 against the dollar.

Similarly, at the black market, the Naira appreciated by N5 to N1450 per dollar, up from N1455.

The development comes as the apex in a notice signed by its director of the trade and exchange department, directing banks to sell a maximum of $150,000 per week to licensed Bureau De Change operators.
DAILY POST reports that the country’s external reserves remained high at $47.03 billion as of 6th February 2026.

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