National bureau of statistics (NBS) report shows in May 2025, the Headline inflation rate eased to 22.97% relative to the April 2025 headline inflation rate of 23.71%. Looking at the movement, the May 2025 Headline inflation rate decreased 0.74% compared to the April 2025 Headline inflation rate.
While most countries across west Africa records high inflation rates on a year on year (YOY)basis, the Africa giant–Nigeria has been a bit more resilient with the continuous struggle to reduce the price of goods and services while increasing the purchasing power of the people.
The success of the continuous struggle can be seen on a YOY basis with Headline inflation rate 10.98% lower than the rate recorded in May 2024 (33.95%). This shows that the Headline inflation rate year-on-year (YOY) basis decreased in May 2025 compared to the same month in the preceding year (2024).
Furthermore, on a month-on-month basis, the Headline inflation rate in May 2025 was 1.53%, which was 0.33% lower than the rate recorded in April 2025 (1.86%). This means that in May 2025, price of goods and services were relatively cheaper and stable compared to April 2025.
However, the drop in rates comes months after world bank and other financial experts predicted the decline—citing Nigeria’s bold economic reforms paying off.
Following the backdrop of inflation rate, the federal minister of finance and coordinating minister of the economy Mr. Wale Edun and his counterpart governor of the central bank of Nigeria Mr. Olayemi Cardoso rendezvous strategically to “deepen fiscal–monetary policy alignment.”
The minister of finance handles fiscal policies while the central bank boss deals with monetary policies.
According to a recent report from the finance ministry, the discussion was centered around “sustaining and accelerating this momentum” making sure the inflation figures continues dropping “essential to stabilizing prices, boosting investor confidence, and empowering private sector-led growth.”
Meanwhile, the strategic rendezvous signals “commitment to collaborative economic management” with a renewed focus on driving sustainable growth and development in country.
Urban and Rural inflation
NBS report shows On a year-on-year basis, in May 2025, the Urban inflation rate was 23.14%, 13.20% points lower compared to the 36.34% recorded in May 2024. On a month-on-month basis, the Urban inflation rate was 1.40% in May 2025, up by 0.22% compared to April 2025 (1.18%). The corresponding twelve-month
average for the Urban inflation rate was 29.30% in May 2025. This was 1.77% points lower compared to the 31.07% reported in May 2024.
However, the rural inflation rate in May 2025 was 22.70% on a year-on-year basis. This was 9.12% points lower compared to the 31.82% recorded in May 2024. On a month-on-month basis, the rural inflation rate in May 2025 was 1.83%, down by 1.72% compared to April 2025 (3.56%). The corresponding twelve-month average for the Rural inflation rate in May 2025 was 25.56%. This was 1.71% points lower compared to the 27.27% recorded in May 2024.
Food and All Item Inflation
NBS reported that Food inflation rate in May 2025 was 21.14% on a year-on-year basis. This was 19.52% points lower compared to the rate recorded in May 2024 (40.66%). The significant decline in the annual food inflation figure is technically due to the change in the base year. On a month-on-month basis, the Food inflation rate in May 2025 was 2.19%, up by 0.12% compared to April 2025 (2.06%). The increase can be attributed to the rate of decrease in the average prices of Yam, Avenger (Ogbono/Apon), Cassava Tuber, Maize Flour, Fresh Pepper, Sweet Potatoes, etc. However, “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 22.28% in May 2025 on a year-on-year basis; declined by 4.76% when compared to the 27.04% recorded in May 2024. On a month-on-month basis, the Core Inflation rate was 1.10% in May 2025, down by 0.23% compared to April 2025 (1.34%). The average twelve-month annual inflation rate was 24.51% for the twelve months ending May 2025, which was 1.06% points higher than the 23.45% recorded in May 2024.
