Nigeria’s inflation rate fell to 20.12 per cent in August 2025 from 21.88 per cent in July, the National Bureau of Statistics (NBS) announced on Monday. The moderation was driven by lower food and energy prices and coincided with the Federal Government’s suspension of a controversial four per cent Free-on-Board (FOB) levy on imports.
Finance and Economy Minister Wale Edun ordered the immediate suspension of the levy through a letter dated September 15, 2025, following extensive consultations with industry stakeholders. He said the decision was necessary to ease trade facilitation and reduce the financial burden on businesses, which risked worsening inflation and undermining competitiveness.
According to the NBS, headline inflation slowed year-on-year to 12.03 per cent, down from 32.15 per cent in August 2024, partly reflecting a rebased index. Food inflation also eased to 21.87 per cent from 37.52 per cent a year earlier, as average prices of rice, maize flour, sorghum, millet, semolina, and soya milk declined.
Core inflation, which excludes volatile agricultural and energy items, dropped to 20.33 per cent year-on-year from 27.58 per cent in August 2024. Urban inflation slowed to 19.75 per cent, while rural inflation stood at 20.28 per cent.
At state level, Ekiti (28.17 per cent), Kano (27.27 per cent), and Oyo (26.58 per cent) posted the highest year-on-year headline inflation, while Zamfara (11.82 per cent), Anambra (14.16 per cent), and Enugu (14.20 per cent) recorded the lowest.
The Finance Ministry said the suspension of the levy would enable broader stakeholder engagement and a review of customs revenue frameworks, paving the way for a more equitable and efficient system to fund Nigeria Customs Service operations and modernisation.
