Inflation in Nigeria is finally showing signs of easing, offering a glimmer of relief for households and businesses.
Analysts at Stanbic IBTC Bank project that headline inflation will fall to 15.84% in October 2025, down from 18.02% in September, as seasonal harvests boost food supply and agricultural output improves.
Inflation Eases
Furthermore, the bank’s latest Purchasing Managers Index (PMI) report indicates that inflation could decline further to between 14.25% and 14.62% in November.
Head of equity research for West Africa at Stanbic IBTC, Muyiwa Oni, explained that food prices will likely stay low until December, easing pressure on consumers.
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He added that non-food inflation may face mild upward pressure from fuel costs, but the naira’s stability should soften the impact.
Business Activity Rises
Meanwhile, the PMI survey, conducted from October 9 to 29, revealed faster private-sector growth, with the headline index rising to 54.0 points from 53.4 in September, marking 11 consecutive months of expansion.
Output hit a six-month high, driven by new product launches and rising customer demand, with manufacturing leading the way.
Although fuel prices may edge up due to Dangote Refinery issues, analysts expect the naira’s stability and potential monetary easing to strengthen the real sector, supporting a projected 4.0% GDP growth for 2025.
