Dear Subscriber,
Inflation rates continue to ease further to 20.12% in August
Nigeria’s headline inflation rate slowed to 20.12% in August from 21.88% in July. This marks the fifth consecutive monthly decline since April 2025. The moderation in inflation is supported by relative exchange rate stability and the harvest season, signaling improved supply dynamics with policy efforts to stabilize the economy.
However, high inflationary pressures still persist in certain regions such as Borno and Kano, where food prices remain elevated, signaling uneven regional impacts. While headline inflation showed improvement, core inflation remained elevated at 20.3%, indicating ongoing price pressures in housing, utilities, transport, and other essential services. For consumers and small businesses, the easing inflation trend implies a gradual relief from the high cost of living and operating expenses.
The Naira continues to appreciate in September
The naira continues to gain strength, trading at an average rate of ₦1,530/$ in the first half of the month. It peaked at ₦1,541/$ on September 1 before following an upward trend to reach its strongest level of ₦1,520/$ on September 8. This appreciation is driven by a 26% year-on-year increase in foreign exchange inflows and the Central Bank of Nigeria’s contractionary monetary policy aimed at curbing inflation. As inflation gradually eases, investor confidence improves, strengthening the naira by enhancing purchasing power and easing pressure on the exchange rate. With December approaching, heightened economic activity and festive spending are expected to inject more dollar liquidity into the economy. It’s also worth noting, that the main crop cocoa is underway till January; this typically leads to higher export earnings, providing additional support for the naira’s positive momentum.
Furthermore, positive momentum in Nigeria’s private sector deepened in August 2025, as reflected by the rise in the Purchasing Managers’ Index (PMI) to 54.2 from 54.0 in July, marking the strongest growth in four months. This increase captures strengthening activity and output levels across businesses, driven by rising consumer demand and easing inflationary pressures. The expansion was broad-based, led by services, construction, and agriculture, indicating a balanced recovery across key sectors. If sustained, this improved performance could expand business opportunities by lowering input costs and reducing financial strain on households, creating a more supportive environment for growth and investment.
This edition of the Unity Bank Digest provides a comprehensive analysis of these economic trends, engaging lifestyle, and entertainment stories for your reading pleasure.
