Nigeria’s Food Inflation Hits 14-Year Low
Nigeria has recorded its lowest food inflation level in 14 years, with prices of key staples easing significantly, according to a new report.
Data released by the National Bureau of Statistics (NBS) shows food inflation dropped to 8.89 per cent in January, marking a return to single-digit levels after more than a decade of persistently high food prices. The figure is the lowest since August 2011, when food inflation stood at 8.66 per cent.
The report attributed the slowdown to declining average prices of major food items, including water yams, eggs, green peas, groundnut oil, soya beans, palm oil, and maize.
However, the Centre for the Promotion of Private Enterprise (CPPE) cautioned that while lower food prices improve consumers’ purchasing power, they could also threaten farmers’ income and long-term agricultural sustainability.
In a statement signed by its Chief Executive Officer, Muda Yusuf, the organisation noted that easing inflation is now spreading beyond food to other areas of consumer spending — a development with major implications for monetary policy, investment decisions, and agricultural productivity.
Yusuf described the trend as evidence of real disinflation rather than temporary price fluctuations. Still, he warned that sustained declines in food prices could weaken farmers’ earnings, reduce investment in agriculture, and dampen rural purchasing power. Over time, this could discourage production, create supply shortages, and trigger fresh inflationary pressures.
He stressed the need to balance affordable food prices for consumers with sustainable income for producers to protect national food security. The CPPE recommended policies such as guaranteed pricing for selected crops and expanded agro-processing capacity to support farmers.
The group also noted that easing inflation could create room for gradual and data-driven monetary easing, potentially supporting lower interest rates and encouraging long-term investment.
Headline Inflation Also Edges Down
The NBS report further showed that headline inflation declined slightly to 15.10 per cent in January 2026, down from 15.15 per cent in December 2025.
Year-on-year inflation in urban areas fell to 15.36 per cent from 29.45 per cent recorded in January 2025, while rural inflation dropped to 14.44 per cent from 25.04 per cent over the same period.
On a month-to-month basis, headline inflation stood at –2.88 per cent in January 2026, significantly lower than the 0.54 per cent recorded in December 2025.
The Consumer Price Index (CPI) also declined to 127.4 points in January, down from 131.2 points in the previous month.
According to the report, the January figures signal a meaningful step toward macroeconomic stabilisation. Analysts say maintaining the progress while safeguarding agricultural productivity and rural livelihoods will be key to achieving lasting economic stability and inclusive growth.
