By Simeon Shodimu
The National Bureau of Statistics in its latest inflation release of August says Nigeria ‘s headline inflation rate decreased to 20.12 per cent in August 2025 from 21.88 per cent in July, the National Bureau of Statistics (NBS) report. The decline of 1.76 percentage points marks the fifth consecutive monthly drop in the Consumer Price Index (CPI), continuing the trend observed since April 2025 when inflation stood at 23.71 per cent.
The decline according to NBS in the annual food inflation figure is technically due to the change in the base year.
Also, the headline inflation rate also eased to 20.12 percent relative to the July 2025 headline inflation rate of 21.88 percent.
The Year-on-Year food inflation was highest in Borno (36.67 percent), Kano (30.44 percent), Akwa Ibom (29.85 percent), while Zamfara (3.30 percent), Yobe (3.60 percent), and Sokoto (6.34 percent) recorded the slowest rise.
However, on a Month-on-Month basis, August 2025 Food inflation was highest in Kaduna (9.37 percent), Katsina (9.05 percent), Akwa Ibom
(7.87 percent), while Bayelsa (-9.52 percent), Sokoto (-8.92 percent), and Borno (-8.74 percent) recorded decline in the period.
The NBS report showed that the core inflation, which excludes the prices of vola tile agricultural produces and energy stood at 20.33 percent in August 2025 on a year-on-year basis. This a de cline of 7.25 percent when compared to the 27.58 percent recorded in August 2024.
“On a month-on-month basis, the Core Inflation rate was 1.43 percent in August 2025, up by 0.46 percent compared to July 2025 (0.97 percent). The average twelve-month annual inflation rate was 23.04 percent for the twelve months ending August 2025, this was 2.14 percent points lower than the 25.18 percent recorded in August 2024.
“August 2025, All Items inflation rate on a Year-on-Year basis was highest in Ekiti (28.17 percent), Ka no (27.27 percent), and Oyo (26.58 percent), while Zamfara (11.82 percent), Anambra (14.16 percent) and Enugu
(14.20 percent) recorded the lowest rise in Headline inflation on a Year-on-Year basis.
“On a Month-on Month basis, however, August 2025 recorded the highest increases in Yobe (9.20 percent), Katsina (8.59 percent) and Sokoto (6.57 percent), while Enugu (-5.32 percent), Taraba (-3.64 percent), and Nasarawa (-3.56 percent) recorded decline in Month-on-Month inflation,” the report stated.
Meanwhile, Nigerian farmers are warning that food prices will stay high unless the issue of rising production costs is addressed. The main concerns driving this warning include:
a) Rising Fertilizer Prices: Increased costs of fertilizers are significantly impacting farmers’ profit margins.
b) Escalating Input Costs*: Higher costs for seeds, pesticides, and other essential inputs are adding to the financial strain on farmers.
c) Worsening Climate Change: Climate-related challenges are further threatening food production and farmers’ ability to maintain profitability.
These factors are not only affecting farmers but also putting the nation’s food production at risk. According to experts, unless these costs fall, food prices will likely remain high, disproportionately affecting lower-income households who already struggle to afford nutritious food.
