Deposit Money Banks are shoring up their capital base as the Central Bank of Nigeria intensifies oversight, reinforcing governance, transparency, and risk management to ensure a resilient, stable financial system, OLUWAKEMI ABIMBOLA writes

Nigeria’s banking system remains stable and resilient, a key pillar of the country’s financial stability. Yet the Central Bank Governor, Olayemi Cardoso, says the apex bank continues to stay alert to emerging risks such as cyber threats, credit-concentration pressures, and operational vulnerabilities. These challenges, he explained, are being managed through strengthened risk-based supervision and the ongoing transition to Basel III, which is expected to enhance capital quality, reinforce resilience, and improve liquidity monitoring as the banking recapitalisation drive progresses.

Nigerian banks are navigating one of the most defining periods in their history. Importantly, members of the Monetary Policy Committee have acknowledged that the system remains safe and sound. At the 303rd MPC meeting in Abuja, the committee expressed satisfaction with the sustained strength of the banking sector, noting that most financial soundness indicators continue to fall within regulatory benchmarks.

Committee members also recognised the significant progress recorded in the recapitalisation programme, with 16 banks already fully meeting the revised capital requirements. They encouraged the CBN to ensure the programme is completed successfully.

With just under four months remaining before the conclusion of the recapitalisation exercise, Cardoso confirmed that the process remains firmly on course. Speaking at the recent Bankers’ Dinner in Lagos, he noted that several banks have already met the new capital thresholds, while others are steadily advancing and are well positioned to meet the 31 March 2026 deadline.

“To date, 27 banks have raised capital through public offers and rights issues, and sixteen have already met or exceeded the new requirements, a clear testament to the depth, resilience, and capacity of Nigeria’s banking sector,” he said.

“As we strengthen the capacity of our banks, stress-testing this year confirms that Nigeria’s banking sector remains fundamentally robust. Key financial soundness indicators overwhelmingly satisfied prudential benchmarks during the year,” he added.

Credit-risk framework

The CBN is also redesigning the banking sector’s credit-risk framework to safeguard the estimated N4.14tn in new capital being raised. Cardoso said the bank is enforcing stronger governance, transparency, and accountability to protect these funds. This effort is supported by a newly established Compliance Department, now fully operational, with mandates covering financial crime supervision, market conduct, enterprise security, corporate governance, and environmental, social, and governance issues.

According to him, the strengthened controls will ensure that the new capital is properly managed. “As recapitalisation progresses, we are redesigning the credit-risk framework to enforce stronger governance, greater transparency, and firmer accountability across the sector. We are determined to break the boom-and-bust cycle that has accompanied past recapitalisation efforts,” he stated.

The CBN’s Credit Risk Management System is now web-enabled, allowing banks to access its database for statutory returns and borrower checks. The apex bank is also integrating the system with banks’ internal platforms to improve efficiency.

A Deloitte report titled “Nigeria’s macro headwinds trigger bank recapitalisation” estimates that banks will raise about N4.14tn before the exercise ends in March 2026. The report noted that the sharp increase in minimum capital requirements, ranging from N50bn to N500bn depending on licence type, is essential to meet the industry’s capital adequacy needs amid inflation, high interest rates, currency volatility, and forex constraints.

The report added, “The upward revision will ensure that Nigerian banks have the capacity to take on bigger risks and stay afloat amid both domestic and external shocks. It also means an increased liquidity position of banks, which will help broaden their loss-bearing capabilities.”

Cardoso maintained that Nigeria’s banking system remains sound and resilient. “At the same time, we remain vigilant to emerging risks, including cyber threats, credit-concentration pressures, and operational vulnerabilities,” he said. He reiterated that the Basel III transition will further strengthen the system’s resilience.

The CBN is also reinforcing operational discipline to ensure that the financial system works efficiently for all Nigerians. Cardoso explained that the bank undertook an end-to-end review of the entire cash lifecycle—production, transportation, distribution, and consumer access. This review, he noted, informed steps such as recalibrating cash-printing models, issuing ATM-to-card ratio guidelines, strengthening approvals for ATM or branch closures, sanctioning banks whose ATMs fail to dispense cash, and enhancing supervision of POS operators nationwide.

These regulatory interventions reflect the CBN’s commitment to supporting the government’s ambition of achieving a $1tn GDP by 2030, as proposed in the Policy Advisory Council’s national economic plan. A well-capitalised banking sector is considered critical to realising this vision. Cardoso said banks must be sufficiently capitalised to support future economic expansion.

“Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1tn economy in the near future? In my opinion, the answer is ‘No!’ unless we take action,” he said, noting that the ongoing recapitalisation will enable banks to attract significant transactions and support growth.

The CBN has assured the public and depositors that the sector remains secure. “The CBN affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision,” the bank stated.

Road to recapitalisation

On 28 March 2024, the CBN announced a two-year recapitalisation programme that began on 1 April 2024. Minimum capital was increased to N500bn, N200bn, and N50bn for commercial banks with international, national, and regional licences, respectively. Merchant banks must hold N50 bn, while non-interest banks require N20bn (national) and N10bn (regional). The compliance deadline is 31 March 2026.

Cardoso said the policy is expected to drive inclusive growth by enabling banks to extend more credit to MSMEs and invest in technology and innovation, which are vital for expanding digital financial services and improving access in remote areas.

Under the recapitalisation exercise, the CBN adopted a distinct definition of minimum capital base, comprising paid-up capital and share premium only, excluding reserves and retained earnings. This means most banks must raise fresh capital even if their shareholders’ funds exceed earlier requirements.

Cardoso emphasised that the sector remains strong. “The non-performing loan ratio remains within the prudential benchmark of five per cent,” he said, adding that the liquidity ratio also surpasses the 30 per cent regulatory minimum. He noted that recent stress tests reaffirm the system’s overall robustness.

CBN Deputy Governor (Corporate Services), Ms Emem Usoro, said achieving a $1tn economy requires structured planning, clear policies, and committed implementation. She emphasised that recapitalisation is a key pillar of this goal, noting that banks must be equipped to finance a larger economy. “As we work towards building a $1tn economy, we must consider the recapitalisation of our banks to be able to fund, finance and power the economy,” she said in Abuja.

United Bank for Africa Group Managing Director, Oliver Alawuba, described the recapitalisation exercise as timely and necessary to strengthen the financial system. According to him, it will help the sector withstand inflation, currency instability, and global geopolitical shocks while positioning banks to finance large-scale infrastructure and industrial projects.

What the law says

The Central Bank of Nigeria Act of 2007 mandates the CBN to promote financial system stability. The bank fulfils this responsibility through reforms, greater access to finance, institutional capacity building, and enforcement of strong corporate governance practices.

Analysts note that financial system stability is essential because bank failures can erode public confidence, reduce savings and investment, disrupt the money supply, and trigger payment system breakdowns with harmful effects on the real economy. A stable financial system also strengthens the transmission of monetary policy, ensuring that authorities can achieve their primary objective of price stability.

Over the years, the CBN has introduced several reforms aimed at strengthening the banking industry and ensuring the effective functioning of the financial system.

The Nigeria Deposit Insurance Corporation and the Nigeria Inter-Bank Settlement System Plc are set to sign a Memorandum of Understanding aimed at ensuring a more efficient process of reimbursement for depositors in the event of bank failure

According to a statement from the NDIC on Wednesday, the Managing Director/Chief Executive of the NDIC, Mr Thompson Sunday, disclosed this during a courtesy visit to the Corporation’s Head Office in Abuja by the NIBSS Executive Management team led by its Managing Director/Chief Executive, Mr Premier Oiwoh.

This proposed MoU comes a day after the NDIC commenced the liquidation process for two mortgage banks, Aso Savings and Loans and Union Homes Savings and Loans, whose licences were revoked by the Central Bank of Nigeria. NDIC said that depositors of the defunct banks will be paid their insured deposits of up to N2m per depositor, and those with deposits above N2m will be settled once the assets of the banks have been disposed of.

Speaking during the visit, the NDIC boss commended NIBSS for its longstanding partnership and invaluable contributions to strengthening the Corporation’s mandate of protecting depositors and enhancing public confidence in the banking system. He highlighted the pivotal role played by the NIBSS in driving digital verification processes, particularly through the deployment of the Bank Verification Number platform, which enabled seamless payment to the alternate bank accounts of depositors of the failed Heritage Bank Limited.

“You have been a reliable partner, and NDIC remains committed to that partnership. Without NIBSS’s support, it would have been difficult to achieve the milestone we attained with the closure of failed Heritage Bank despite the impromptu nature of the arrangement. That is why it is important for us to concretise our partnership through this MoU,” the NDIC MD/CE stressed.

Sunday highlighted key areas to be covered by the MoU, such as real-time synchronisation of NDIC’s deposit registers and electronic records to allow for swift verification of eligible accounts during bank resolution; expansion of disbursement channels for depositor claims to include Mobile Money Operators and a possible NDIC-branded mobile interface; and investment in Single Customer View and interoperability infrastructure for instant validation in the event of bank failure.

The NDIC boss also hailed NIBSS for reforming the payments system in Nigeria and putting it ahead of its peers in most parts of the world, adding that the efforts of the NIBBS platform in mitigating fraud in the financial system are laudable.

In his response, NIBSS’ Oiwoh expressed appreciation to the NDIC leadership for the sustained partnership that is geared towards a safer and smoother payment system in Nigeria over the years. He reaffirmed NIBSS’s full commitment to supporting the Corporation in the delivery of its mandate of depositor protection, emphasising that NIBSS exists to serve Nigerians and stands ready to provide the technological backbone required to enhance financial system stability.

Oiwoh emphasised the critical importance of prompt and efficient reimbursement during bank failures, noting that the NDIC’s efforts in this regard directly contribute to public trust and financial inclusion. He assured that his organisation is working closely with law enforcement agencies to proactively reinforce the safety of the nation’s payment system, as well as strengthen its infrastructure to lower the cost of transactions on its platforms.

The MoU between both institutions is expected to usher in a new era of digitised, responsive, and technology-driven depositor reimbursement processes, ultimately reinforcing confidence in Nigeria’s financial safety-net framework.

Some MRS filling stations in Lagos on Tuesday dropped the price of petrol to N739 per litre, triggering long queues of vehicles seeking to buy the commodity at the outlets.

Our correspondent, who visited parts of Lagos and Ogun states, observed that the MRS filling station in Alapere recorded a large turnout of buyers, many of whom boycotted other outlets selling petrol above N800 per litre.

However, it was observed that MRS filling stations along the Mowe/Ibafo axis of the Lagos-Ibadan Motorway in Ogun State retained their prices at about N875 per litre as of Tuesday evening.

Following the reduction of petrol gantry price from N828 to N699 per litre on Friday, the President of the Dangote Group, Alhaji Aliko Dangote, had vowed to enforce a new pump price regime of N739 per litre.

Dangote said on Sunday that he was aware that, despite lower gantry prices, some filling stations often chose to retain high pump prices, thereby undermining his efforts. According to him, MRS would commence the sale of petrol at N739 per litre from Tuesday, while other partners would follow.

“I was told that the marketers have met with (some officials) and were told to make sure that the price is maintained high. But this price we are going to introduce, we are going to start with MRS stations, most likely on Tuesday in Lagos; that N970 per litre, you won’t see it again. We have also asked members of IPMAN to come now. We have asked anybody who can buy 10 trucks to come and buy 10 trucks at N699.

“We are going to use whatever resources we have to make sure that we crash the price down. For this December and January, we don’t want people to sell petrol for more than N740 nationwide. Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure that these prices are down. If you have money to come and buy, you can pick up petrol at N699,” he said.

It was confirmed on Tuesday that the N739-per-litre price had been kick-started by MRS in Lagos. Our correspondent observed that other filling stations sold PMS at prices ranging between N850 and N890 per litre on Tuesday.

Reacting, the President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, stated that PETROAN strongly condemned the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency, in what appeared to be a veiled reference to Dangote.

According to him, the new price cut allegedly contravenes the provisions of the Petroleum Industry Act, 2021, which he said clearly stipulates that petroleum product prices in the downstream sector should be determined by market forces and competitive commercial engagement.

“PETROAN strongly condemns the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency. This, PETROAN emphasises, is contrary to the provisions of the Petroleum Industry Act 2021, which clearly directs that petroleum product prices in the downstream sector should be determined by market forces and competitive commercial engagement. Section 205(1) of the PIA specifically states that wholesale and retail prices of petroleum products shall be based on unrestricted free market conditions, subject only to limited regulatory oversight and protection against monopolistic practices,” he stated.

The PETROAN boss said the “current dirty price war is already causing collateral damage to all parties involved.” According to him, most of the “aggressive price crashes appear designed to frustrate importers and are often executed below cost”.

Consequently, he said, “all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector.”

He further warned that prolonged conflict among key stakeholders could expose the sector to risks of market monopolisation, reduced competition, and heightened operational uncertainty for retail outlet owners, with increased pressure on consumers through unstable pricing regimes and wider adverse implications for the economy.

The association stressed that only constructive negotiation and fair commercial engagement could encourage importers who favour international markets to patronise local refineries, cautioning against what it described as compelling or brutal price-ambushing strategies that undermine market confidence and distort fair competition.

Independent marketers told The PUNCH that they could lose up to N80bn as a result of Dangote’s new price cut. Findings by The PUNCH showed that petrol importers were on the verge of losing as much as N102.48bn monthly following the Dangote refinery’s reduction of its gantry price from N828 per litre to N699.

At the same time, the refinery is projected to lose about N91bn in a month as a direct consequence of the price cut, underscoring the intensity of the competition reshaping Nigeria’s downstream oil market

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation Plc, has announced the appointment of Dr Awele Elumelu as Chair of the company, effective January 1, 2026.

The announcement was disclosed on the Nigerian Exchange Limited on Tuesday. Elumelu’s appointment follows the  retirement of the current Chair, Emmanuel Nnorom, also effective from January 1, 2026.

Elumelu brings extensive leadership experience across healthcare, insurance, corporate governance, and philanthropy. She currently chairs Avon Healthcare Limited, Nigeria’s leading health insurance provider, and Avon Medical Practice, a fast-growing network of hospitals and clinics. She also chairs Heirs Insurance Brokers and is a founding Director of Heirs Holdings Limited.

A medical doctor with an MBBS from the University of Benin, Elumelu has clinical experience in Nigeria and the United Kingdom.

Her medical training has been complemented by executive education at prestigious institutions, including Harvard Business School, IMD Switzerland, and the London School of Economics.

Her commitment to social impact is reflected in her role as Trustee and Co-Founder of the Tony Elumelu Foundation, Africa’s leading philanthropy empowering young entrepreneurs.

Through the foundation, she has been instrumental in driving in driving gender inclusion and supporting over 24,000 young African men and women with seed capital, training, and mentorship.   “I remain committed to driving gender inclusion and creating opportunities that empower young Africans to achieve their full potential,” Dr Awele Elumelu added

Commenting on the appointment, Group Chair of Transcorp Group, Tony Elumelu, said, “We are delighted to welcome Awele Elumelu as the Board Chair of Transcorp Hotels.

“Her distinguished track record perfectly aligns with our ambition to redefine hospitality through innovation, wellness integration, and responsible business practices. Her strategic insight will be invaluable, as we continue to elevate guest experiences and deliver sustainable value to all stakeholders.”

Elumelu’s appointment is expected to bring a new wave of strategic leadership to Transcorp Hotels, strengthening the company’s governance, operational efficiency, and commitment to excellence in the hospitality sector.

Analysts have noted that her diverse experience in healthcare, corporate management, and philanthropy positions her uniquely to lead initiatives that integrate wellness, customer satisfaction, and social impact into the company’s core operations.

With her leadership, Transcorp Hotels is poised to enhance its service offerings, expand its footprint in Nigeria and beyond, and maintain its position as one of the country’s premier hospitality brands. The transition also underscores Transcorp Group’s commitment to leveraging skilled and visionary leadership to drive sustainable growth and shareholder value.

United Bank for Africa has entered into a $100m partnership with the Lagos State Government and LagRide to finance vehicles for 3,500 ride-hailing drivers, a move aimed at transitioning drivers from renting cars to vehicle ownership.

The Memorandum of Understanding was signed between UBA and LagRide on Tuesday in Ikeja, Lagos. Speaking at the ceremony, the Group Managing Director/Chief Executive Officer of UBA, Oliver Alawuba, said, “What we have today is the signing ceremony of a partnership among UBA Plc, LagRide, and the Lagos State Government. The purpose of this partnership is to finance up to 3,500 vehicles for Lag Ride drivers in Lagos State.

“What this means is that at least 3,500 drivers will transition from renting vehicles to owning their own cars within a period of four years. This represents real economic empowerment for drivers, and it also comes with structured training.

By providing proper training for drivers, we expect to see improved orderliness and better road conduct on Lagos roads. For Lagos passengers, this partnership will deliver a more secure and safer ride experience across the state.”

He added that the overall motivation for the initiative is to drive financial inclusion, growth, and progress for all stakeholders.

“Beyond the immediate benefits, the motivation behind this $100m investment is clear. Lagos deserves more. We must drive financial inclusion, empower people, and create employment opportunities for the teeming youth population in Lagos State and beyond.

“Another key component of this initiative is the introduction of CNG vehicles. These vehicles will run on clean energy, contributing to a healthier and more sustainable environment. There have been concerns about safety and insecurity around some ride services in Lagos, but the drivers under this programme are professionally trained, ensuring passengers enjoy a safe and secure experience with Lag Ride.”

Alawuba maintained that interest in this model is already growing, with several states expressing interest.

“Our focus is to get it right in Lagos first, and others will follow. The repayment structure for this facility has been designed to allow a smooth transition from renting to ownership. The tenure is long enough to ensure ease of payment and sustainable ownership, making this a long-term empowerment programme,” he asserted.

Also speaking at the signing ceremony, the Chairman of LagRide, Diane Chen, said, “From today, we are moving from a system where people merely walk up to a platform to one that offers empowerment, structure, and success to the owner of the car. That is a significant change for the consumer, for the driver, and for the rider.

“For riders, the major change is that we will bring in more capital and more vehicles, which will translate into better service delivery. In terms of maintenance, CIG Motors, a well-established company in Nigeria with over ten years of experience, will be responsible. GAC Motor is a well-known brand across the country, and with workshops spread nationwide, we are able to provide and guarantee proper maintenance so that all vehicles remain functional and safe on the road.”

Chen also disclosed that Lag Ride was open to partnerships beyond UBA and the banking sector.

“Beyond UBA and the banks or financial institutions involved, we welcome partnerships with different stakeholders. Our goal is to make this success story inclusive and to carry more people along on this journey,” she said.

One of the drivers at the ceremony, Dorothy Etim, spoke to journalists about her experience.

She said, “Being the only woman standing here today, this moment feels like a dream come true for me. I have been in the e-hailing space for seven years, and I have been with LagRide for six months. I gave my dedication and my all because I knew it was a learning process, and today I am seeing the reward. I am extremely happy about this initiative and grateful that UBA has been able to make this happen for us.

“As a matter of fact, this is my second time benefiting from a bank. Four years ago, I was also empowered by a bank, and through that support, I was able to grow a network of female drivers from twenty-one women to five hundred nationwide. We even created a group specifically for women drivers. I was also able to encourage many of my riders to take up this same occupation.

“I am a very proud female driver. I have been around, I have navigated the challenges, and I want to encourage every other woman out there, determination is key. There are so many people sitting idle, and I want to encourage them that today, you can come on board and start driving. There is nothing like financial independence.

Barring any last-minute change, MRS and other partners of the Dangote Petroleum Refinery are set to begin selling petrol at N739 per litre.

This comes two days after the refinery slashed its petrol gantry price from N828 to N699 per litre. Speaking at a press briefing at the Lekki refinery on Sunday, the President of the Dangote Group, Alhaji Aliko Dangote, said he was aware that despite lower gantry prices, some filling stations often choose to keep pump prices high, thereby sabotaging his efforts.

According to him, MRS would commence the sale of petrol at N739 per litre from Tuesday, while other partners would follow. Dangote alleged that some officials had met with certain marketers and encouraged them to keep prices high in order to frustrate the price reduction, stressing that he would fight to enforce the new price regime.

“I was told that the marketers have met with (some officials) and were told to make sure that the price is maintained high. But this price we are going to introduce, we are going to start with MRS stations most likely on Tuesday in Lagos; that N970 per litre, you won’t see it again. We have also asked members of IPMAN to come now.

We have asked anybody who can buy 10 trucks to come and buy 10 trucks at N699.

“We are going to use whatever resources that we have to make sure that we crash the price down. We will get these sales; maybe it will take us a week to 10 days. But first of all, within a week to 10 days, we will be able to deliver. For this December and January, we don’t want people to sell petrol for more than N740 nationwide. Those who want to keep the price to sabotage the government, we will fight as much as we can to make sure that these prices are down. That’s not the price. If you have money to come and buy, you can pick up petrol at N699,” he said.

Dangote said transporting petrol from the refinery costs no more than N15 per litre, questioning why pump prices would rise as high as N900 per litre. He also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of issuing 47 import licences to bring in more than seven billion litres of petrol in the first quarter of 2026, a move he said was killing local investments.

“Freight within Lagos is N10 or N15, maximum. So if it’s N10 to N15, everything is going to cost you N715. Why do you want to sell at N900? People should get the real price. I cannot come now and take the hit. Did we make money? No, we didn’t make money. But as we speak now, even our tanks are full because the NMDPRA has issued reckless licences. And we have to now go and complain to the government.

“They normally issue licences in the middle of the month. So, they are now ready to issue licences for about 7.5 billion litres for the first quarter of 2026, despite the fact that we have guaranteed to supply enough quantity.

“If you are talking about monopoly, did we stop anybody? They issued 47 licences. Let those people come and put up a refinery here, or let them go and buy even NNPC’s and operate them. If it’s profitable, they should go and do that now. NNPC was the only business that was bringing in fuel before.

“Now, we are the only one and one of the few modular refineries that are producing. Those modular refineries, I can tell you for nothing that they are almost on the verge of collapse. None of them is making a dime,” he added.

The billionaire businessman assured Nigerians that the N739 per litre price would be enforced, beginning with MRS stations on Tuesday. “Starting from Tuesday, MRS will start selling petrol at N739/litre. Definitely, we will enforce that low price. We will make sure that it’s implemented. If you have your truck, you can come here and buy it. We are selling at N699. The N699 includes the percentage of NMDPRA. So what actually comes out to us is about N389 or so,” he stated.

Contacted for his reaction, the NMDPRA spokesman, George Ene-Ita, said, “For now, no comment.”

Nigeria’s headline inflation rate eased further in November 2025 as consumer price pressures moderated under the new base year, according to the latest Consumer Price Index report released by the National Bureau of Statistics.

The NBS said the Consumer Price Index rose to 130.5 points in November 2025 from 128.9 points in October, reflecting a 1.6-point increase month on month, but the headline inflation rate declined to 14.45 per cent year on year, compared with 16.05 per cent recorded in October 2025.

This came as the organised private sector stated that the sustained easing of Nigeria’s inflation rate to 14.45 per cent in November 2025 would boost consumer purchasing power and support business activity, while urging the Federal Government to provide targeted credit facilities to micro, small, and medium enterprises.

“The Consumer Price Index rose to 130.5 in November 2025, reflecting a 1.6-point increase from the preceding month (128.9).

In November 2025, the headline inflation rate eased to 14.45 per cent relative to the October 2025 headline inflation rate of 16.05 per cent.

“Looking at the movement, the November 2025 headline inflation rate showed a decrease of 1.6 per cent compared to the October 2025 headline inflation rate,” the NBS report read.

On a month-on-month basis, headline inflation stood at 1.22 per cent in November, higher than the 0.93 per cent recorded in October, indicating that average prices still increased at a faster pace during the month despite the moderation in annual inflation.

The statistical agency noted that on a year-on-year basis, headline inflation in November 2025 was 20.15 percentage points lower than the 34.60 per cent recorded in November 2024, largely reflecting the effect of the rebasing exercise, with the new base year set at 2024 instead of 2009.

Data from the report showed that the average CPI for the twelve months ending November 2025 increased by 20.41 per cent compared with the average of the preceding twelve months, representing a sharp slowdown from the 32.77 per cent recorded in November 2024.

Food and non-alcoholic beverages remained the largest contributor to headline inflation on a year-on-year basis, accounting for 5.78 percentage points, followed by restaurants and accommodation services at 1.87 percentage points and transport at 1.54 percentage points.

Housing, water, electricity, gas, and other fuels contributed 1.22 percentage points, while education services and health accounted for 0.90 and 0.88 percentage points, respectively.

At the month-on-month level, food and non-alcoholic beverages also drove price increases, contributing 0.49 percentage points, followed by restaurants and accommodation services at 0.16 percentage points and transport at 0.13 percentage points.

A breakdown of inflation across locations showed that urban inflation stood at 13.61 per cent year on year in November 2025, representing a steep decline of 23.49 percentage points from the 37.10 per cent recorded in November 2024.

On a month-on-month basis, urban inflation slowed to 0.95 per cent from 1.14 per cent in October, while the twelve-month average urban inflation rate eased to 20.80 per cent.

In contrast, rural inflation was higher at 15.15 per cent year on year in November, although this was still 17.12 percentage points lower than the 32.27 per cent recorded in the corresponding period of 2024. Month-on-month rural inflation accelerated sharply to 1.88 per cent from 0.45 per cent in October, reflecting stronger price pressures in rural areas during the month.

Food inflation also moderated significantly on an annual basis. The NBS reported that food inflation stood at 11.08 per cent year on year in November 2025, down by 28.85 percentage points from 39.93 per cent recorded in November 2024.

However, month-on-month food inflation rose to 1.13 per cent from a contraction of 0.37 per cent in October, driven by price increases in items such as dried tomatoes, cassava tubers, shelled periwinkle, ground pepper, eggs, crayfish, egusi, oxtail, and fresh onions.

The average annual food inflation rate for the twelve months ending November 2025 was 19.68 per cent, compared with 38.67 per cent in the corresponding period of 2024. Core inflation, which excludes volatile agricultural produce and energy prices, stood at 18.04 per cent year on year in November 2025, down from 28.75 per cent in November 2024.

On a month-on-month basis, core inflation eased slightly to 1.28 per cent from 1.42 per cent in October, while the twelve-month average core inflation rate fell to 20.76 per cent. Other sub-indices showed that farm produce inflation stood at 0.79 per cent in November, compared with zero per cent in October, while energy inflation rose to 1.08 per cent from 0.50 per cent.

Services inflation increased to 1.82 per cent from 1.54 per cent, and goods inflation rose to 0.79 per cent from 0.63 per cent in the previous month. At the state level, Rivers recorded the highest year-on-year all-items inflation rate at 17.78 per cent, followed by Ogun at 17.65 per cent and Ekiti at 16.77 per cent.

Plateau recorded the lowest year-on-year inflation at 9.13 per cent, alongside Kebbi at 10.32 per cent and Katsina at 10.60 per cent. On a month-on-month basis, Bayelsa recorded the highest increase at 6.58 per cent, followed by Gombe at 5.11 per cent and Edo at 4.45 per cent, while Plateau, Delta, and Kaduna recorded declines.

Food inflation at the state level showed that Kogi recorded the highest year-on-year increase at 17.83 per cent, followed by Ogun at 16.52 per cent and Rivers at 16.11 per cent.

Imo, Katsina, and Akwa Ibom recorded the slowest rise in food prices on a year-on-year basis. Month-on-month food inflation was highest in Yobe at 9.52 per cent, Katsina at 6.61 per cent, and Ondo at 6.04 per cent, while Imo, Nasarawa, and Enugu recorded declines.

The NBS cautioned that interstate comparisons should be interpreted carefully, noting that CPI weights vary across states based on consumption patterns, which can make direct comparisons of inflation baskets misleading.

OPS speaks

Reacting to the development, the organised private sector said the sustained easing of Nigeria’s inflation would boost consumer purchasing power and support business activity, while urging the Federal Government to provide targeted credit facilities to micro, small, and medium enterprises.

In separate phone interviews with The PUNCH, stakeholders welcomed the slowdown with cautious optimism. These stakeholders, including the President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, and the President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, stated that the government must sustain the reforms while providing credit to small businesses.

The President of ASBON said, “The Nigerian economy, particularly MSMEs, still needs support, especially access to funding through government intervention. Targeted credit facilities are critical to ensure small businesses can compete and grow.”

Kupoluyi stated that the continued moderation in inflation would leave more money in the pockets of Nigerians and support consumption.

He said, “When inflation keeps going down, firstly, it will impact the purchasing power of people, and when people can spend money, that is what the business, that is the private sector, wants. We want people to have an income that they can spend on all other items, not just on food.”

Kupoluyi attributed the easing to the fading impact of fuel subsidy removal shocks, improved stability in the petroleum market, and marginal improvement in oil prices, which support foreign inflows.

“The stability in the petroleum market is part of the reason for the inflation to go down,” he said, adding that sustained infrastructure investment and reopening agriculture to large-scale participation would further moderate prices.

LCCI’s president called for structured support for agriculture, noting that food prices remained central to inflation outcomes. Kupoluyi explained: “Everywhere in the world, you need to subsidise agriculture. It may not be direct; it may be an input subsidy or creating a market so farmers do not lose the value of their labour. The more food we make available, the more inflation will keep going down.”

He added that if the trend persisted, Nigerians would begin to feel broader economic improvements by the first quarter of 2026. “There will be a convergence of the Consumer Price Index going down and the Gross Domestic Product going up,” he said.

Also speaking, National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, described the sustained slowdown as a positive signal of policy discipline, even as he cautioned that it did not immediately translate to higher disposable income.

Kuti-George said, “The sustained slowdown of the inflation rate is a good development. Although it does not mean more money in the pocket of the people, it is a reflection of disciplined fiscal and monetary policies.”

He cited the retention of key monetary policy parameters, increased supply of agricultural products, stability in energy prices, and a relatively stable exchange rate as major drivers of the disinflation.

“Stable inflation rates are good for everyone, not only businesses, but consumers also,” he said, explaining that lower inflation would reduce input costs for manufacturers and improve profitability, while easing pressure on household spending.

President of the ASBON, Dr Egbesola, stated that the inflation data indicated that the recent policy reforms were beginning to gain traction and restore confidence among investors and consumers.

He explained that the relative stability in the foreign exchange market and improved food supply contributed to the easing of inflation. “When we have more supply than demand in terms of food, prices will naturally come down, and this affects a whole lot of things,” he said.

He added that easing inflation would lift consumer purchasing power and support MSMEs through higher sales. “For us in the Micro, Small, and Medium-sized Enterprises space, it is good news because when inflation comes down, consumer purchasing power will go up. That means we will sell more of our products, make more profits, retain jobs and stabilise our businesses,” he said.

However, Egbesola warned that improved macroeconomic stability could disproportionately favour large corporations unless the government intervened deliberately to support smaller firms.

“When investment comes into a stable economy, it often goes to more structured companies, the big corporations. That can leave MSMEs behind,” the ASBON president noted, urging the government not to withdraw support prematurely.

He called for sustained intervention through access to affordable funding. “The Nigerian economy, particularly MSMEs, still needs support, especially access to funding through government intervention. Targeted credit facilities are critical to ensure small businesses can compete and grow,” Egbesola stressed.

He added that overall, MSMEs would benefit from lower inflation through improved planning and predictability. “It helps us to forecast costs and revenue better, stabilise prices and create a more predictable business environment,” he said.

Nigeria’s headline inflation rate eased further in November 2025 as consumer price pressures moderated under the new base year, according to the latest Consumer Price Index report released by the National Bureau of Statistics.

In the report published on its website on Monday, NBS said the Consumer Price Index rose to 130.5 points in November 2025 from 128.9 points in October, reflecting a 1.6-point increase month on month, but the headline inflation rate declined to 14.45 per cent year on year, compared with 16.05 per cent recorded in October 2025.

“The Consumer Price Index rose to 130.5 in November 2025, reflecting a 1.6-point increase from the preceding month (128.9).

“In November 2025, the Headline inflation rate eased to 14.45 per cent relative to the October 2025 headline inflation rate of 16.05 per cent.

“Looking at the movement, the November 2025 Headline inflation rate showed a decrease of 1.6 per cent compared to the October 2025 Headline inflation rate,” the NBS report read.

On a month-on-month basis, headline inflation stood at 1.22 per cent in November, higher than the 0.93 per cent recorded in October, indicating that average prices still increased at a faster pace during the month despite the moderation in annual inflation.

The statistical agency noted that on a year-on-year basis, headline inflation in November 2025 was 20.15 percentage points lower than the 34.60 per cent recorded in November 2024, largely reflecting the effect of the rebasing exercise, with the new base year set at 2024 instead of 2009.

Data from the report showed that the average CPI for the twelve months ending November 2025 increased by 20.41 per cent compared with the average of the preceding twelve months, representing a sharp slowdown from the 32.77 per cent recorded in November 2024.

Food and non-alcoholic beverages remained the largest contributor to headline inflation on a year-on-year basis, accounting for 5.78 percentage points, followed by restaurants and accommodation services at 1.87 percentage points and transport at 1.54 percentage points.

Housing, water, electricity, gas and other fuels contributed 1.22 percentage points, while education services and health accounted for 0.90 and 0.88 percentage points, respectively.

At the month-on-month level, food and non-alcoholic beverages also drove price increases, contributing 0.49 percentage points, followed by restaurants and accommodation services at 0.16 percentage points and transport at 0.13 percentage points.

A breakdown of inflation across locations showed that urban inflation stood at 13.61 per cent year on year in November 2025, representing a steep decline of 23.49 percentage points from the 37.10 per cent recorded in November 2024.

On a month-on-month basis, urban inflation slowed to 0.95 per cent from 1.14 per cent in October, while the twelve-month average urban inflation rate eased to 20.80 per cent.

In contrast, rural inflation was higher at 15.15 per cent year on year in November, although this was still 17.12 percentage points lower than the 32.27 per cent recorded in the corresponding period of 2024.

Month-on-month rural inflation accelerated sharply to 1.88 per cent from 0.45 per cent in October, reflecting stronger price pressures in rural areas during the month.

Food inflation also moderated significantly on an annual basis. The NBS reported that food inflation stood at 11.08 per cent year on year in November 2025, down by 28.85 percentage points from 39.93 per cent recorded in November 2024.

However, month-on-month food inflation rose to 1.13 per cent from a contraction of 0.37 per cent in October, driven by price increases in items such as dried tomatoes, cassava tubers, shelled periwinkle, ground pepper, eggs, crayfish, egusi, oxtail, and fresh onions.

The average annual food inflation rate for the twelve months ending November 2025 was 19.68 per cent, compared with 38.67 per cent in the corresponding period of 2024.

Core inflation, which excludes volatile agricultural produce and energy prices, stood at 18.04 per cent year on year in November 2025, down from 28.75 per cent in November 2024.

On a month-on-month basis, core inflation eased slightly to 1.28 per cent from 1.42 per cent in October, while the twelve-month average core inflation rate fell to 20.76 per cent.

Other sub-indices showed that farm produce inflation stood at 0.79 per cent in November, compared with zero per cent in October, while energy inflation rose to 1.08 per cent from 0.50 per cent.

Services inflation increased to 1.82 per cent from 1.54 per cent, and goods inflation rose to 0.79 per cent from 0.63 per cent in the previous month.

At the state level, Rivers recorded the highest year-on-year all-items inflation rate at 17.78 per cent, followed by Ogun at 17.65 per cent and Ekiti at 16.77 per cent.

Plateau recorded the lowest year-on-year inflation at 9.13 per cent, alongside Kebbi at 10.32 per cent and Katsina at 10.60 per cent.

On a month-on-month basis, Bayelsa recorded the highest increase at 6.58 per cent, followed by Gombe at 5.11 per cent and Edo at 4.45 per cent, while Plateau, Delta, and Kaduna recorded declines.

Food inflation at the state level showed that Kogi recorded the highest year-on-year increase at 17.83 per cent, followed by Ogun at 16.52 per cent and Rivers at 16.11 per cent.

Imo, Katsina, and Akwa Ibom recorded the slowest rise in food prices on a year-on-year basis. Month-on-month food inflation was highest in Yobe at 9.52 per cent, Katsina at 6.61 per cent, and Ondo at 6.04 per cent, while Imo, Nasarawa, and Enugu recorded declines.

The NBS cautioned that interstate comparisons should be interpreted carefully, noting that CPI weights vary across states based on consumption patterns, which can make direct comparisons of inflation baskets misleading.