In January 2026, Nigeria witnessed a slight decline in its headline inflation rate, which fell to 15.10% from 15.15% recorded in December 2025, as reported by the National Bureau of Statistics (NBS). This report highlighted a modest decrease in the Consumer Price Index (CPI), which went down to 127.4 in January from 131.2 the previous month, representing a decline of 3.8 points. Contrary to earlier predictions that inflation could reach as high as 19% in January, the actual numbers showed a cooling of prices in key sectors, particularly food.

Year-on-year comparisons indicate a significant drop in inflation, with the 15.10% rate in January 2026 being 12.51 percentage points lower than the 27.61% recorded in January 2025. This substantial year-on-year decrease characterizes a noteworthy shift in the inflation landscape of Nigeria, indicating possible improvements in economic stability and purchasing power for consumers. Furthermore, the month-on-month inflation rate reflected a decline, at negative 2.88% for January, down from 0.54% in December, signifying a downward trend in average price levels during the month.

The implications of this decline are critical for the Nigerian economy, as lower inflation rates could lead to increased consumer confidence and expenditure. The decrease in food prices, a major component of the CPI, offers relief to households that have been struggling with high living costs. Analysts will likely closely monitor these trends in the coming months to assess their impact on overall economic growth and whether this decrease will lead to sustained inflation control in the future.