The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate rose to 15.15 percent in December 2025.
The NBS announced the rate in its latest consumer price index (CPI) report, released on Thursday.
The data bureau said the CPI, which measures the changes in prices of good and services, rose to “131.2 in December 2025, up by 0.7 points from the previous month (130.5)”.
As of January 2026, Nigeria’s economy is characterized by a “fragile stabilization” following aggressive structural reforms initiated in mid-2023. While macroeconomic indicators show recovery—marked by the fastest growth projections in a decade—ordinary citizens continue to face a severe cost-of-living crisis.
Current Economic Indicators (2026)
GDP Growth: The World Bank and the Nigerian government project growth of 4.4% to 4.7% for 2026. Growth in 2025 was approximately 4.2%, primarily driven by services, agriculture, and a rebound in oil production.
Inflation: After peaking near 35% in late 2024, inflation moderated to roughly 14.5%–16.5% by early 2026, supported by tight monetary policy and currency rebasing.
Currency (Naira): The exchange rate is projected to stabilize around ₦1,400 to the USD in 2026.
GDP Ranking: Following a 2025 rebasing exercise (changing the base year to 2019), Nigeria remains the 4th largest economy in Africa behind South Africa, Egypt, and Algeria, with a nominal GDP of approximately $243.3 billion.
Key Economic Sectors
Services (55.5% of GDP): The dominant driver of growth, led by fintech, telecommunications, and information technology.
Agriculture (27.8% of GDP): The largest employer, though it faces structural constraints such as poor infrastructure and insecurity.
Industry & Manufacturing (16.7% of GDP): This sector has seen its share of GDP shrink, with many factories closing due to high energy costs and currency volatility.
Oil & Gas: Contributes only ~3.4% to GDP but remains the primary source of foreign exchange and government revenue. Notably, Nigeria became a net exporter of refined petrol in 2025 due to the Dangote Refinery.
Ongoing Challenges
Cost of Living: Despite falling inflation rates, prices remain high, and real purchasing power has declined. The number of people living in poverty rose to an estimated 139 million by October 2025.
Fiscal Pressures: High debt-servicing costs and low revenue-to-GDP ratios continue to limit the government’s ability to fund infrastructure and social programs.
Banking Reform: The Central Bank has set a March 31, 2026 deadline for commercial banks to meet new, higher capital requirements (up to ₦500 billion for international banks) to ensure financial stability.
Unemployment: Rates remain high, estimated at nearly 30%, with significant “jobless growth” in sectors that do not require mass labor.
External Relations & Trade
Nigeria remains a critical trading partner for the U.S. and the UK in sub-Saharan Africa. Major exports include crude oil, cocoa, and rubber, while imports are dominated by manufactured goods and machinery. For official data, users should consult the National Bureau of Statistics and the Central Bank of Nigeria.
