Food Inflation in Nigeria Hits 14-Year Low

Nigeria has reported a decrease in food inflation, with a notable drop to 8.89% in January. This marks the first time in over a decade that food inflation has registered single digits, as indicated by a report from the National Bureau of Statistics (NBS).

The inflation statistics reveal that this reduction is the lowest seen in the past 14 years, with the previous record of 8.66% noted in August 2011. The decline in food inflation has been primarily linked to the falling average prices of essential items such as water yams, groundnut oil, eggs, soya beans, maize, green peas, and palm oil.

Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), expressed that while the current decline could enhance consumer purchasing power in the long run, it may adversely affect the sustainable incomes of farmers.

In a statement issued, Yusuf highlighted that the reduction in food prices is likely to improve household purchasing power, although it raises concerns regarding the viability of farm incomes, which could discourage agricultural production and exacerbate future supply shortages and inflationary pressures.

He stated, “These indicators suggest the emergence of real disinflation rather than temporary price volatility.” Additionally, he warned that persistent reductions in food prices might lead to diminished investment capacity among farmers and hinder rural economic activity.

The NBS report indicates that headline inflation also experienced a slight decrease to 15.10% in January 2026, down from 15.15% in December 2025. This slight dip is expected to influence monetary policy and agricultural investment strategies moving forward, as the transitional indicators may facilitate gradual easing of monetary policies, contingent on sustained data evidence.

In comparison, the inflation rate for urban individuals saw a year-on-year decline to 15.36%, compared to 29.45% in January 2025, while rural inflation decreased to 14.44% from 25.04% during the same period.

Yusuf further emphasized the crucial need to find a balance between consumer affordability and producer sustainability, urging policymakers to adopt protective measures for farmers' incomes. "Safeguarding national food security requires ensuring sustainable prices for certain crops while enhancing agro- processing capabilities," he noted.

The CPPE underscored that while the gradual recovery of household demand is evident, the continuation of disinflation could lead to a better interest rate outlook, benefiting long-term productive investments.