Nigeria's inflation rate drops in September 2026

Nigeria's inflation rate slowed to 14.63 percent in September 2026, compared to 15.39 percent in August and 20.98 percent in September 2025, according to the National Bureau of Statistics (NBS), which released the data on October 15, 2026.

Monthly inflation change is minimal

On a monthly basis, the inflation rate was just 0.06 percent in September, a significant drop from 0.71 percent in the previous month. Core inflation, which excludes volatile categories like agricultural products and energy, was 12.95 percent year-on-year, down from 22.11 percent a year earlier.

Food prices decline contributes to lower inflation

The slowdown in overall inflation is partly due to changes in food prices. Food inflation was 19.59 percent year-on-year in September, compared to 20.16 percent in September 2025. On a monthly basis, food prices fell by 1.55 percent, following an increase of 1.02 percent in August.

Key sectors driving inflation

Food and non-alcoholic beverages were the main contributors to overall inflation, adding 5.85 percentage points. Restaurants and accommodation services contributed 1.89 points, and transportation added 1.56 points. Spending on housing, water, electricity, gas, and other fuels contributed 1.23 points.

Central Bank lowers interest rate

The Central Bank of Nigeria (CBN) lowered its key interest rate by 350 basis points in September 2026, bringing it down to 23 percent from 26.5 percent. This decision was made in a context of gradual disinflation and as economic activity continued to grow.

Economic growth supports inflation decline

Real gross domestic product (GDP) grew by 4.43 percent in the second quarter of 2026, compared to 3.89 percent in the first quarter. This growth was driven by agriculture, services, and the oil sector, indicating improving economic conditions.