Geopolitical Tensions Drive Nigeria's Inflation Rate Up

The Centre for the Promotion of Private Enterprise (CPPE), led by Chief Executive Officer Dr. Muda Yusuf, reported that geopolitical tensions in the Middle East are a significant factor behind Nigeria's rising inflation rate.

The headline inflation increased from 15.69% in April 2026 to 15.93% in May 2026, reflecting ongoing impacts on the global energy market and supply chains. Dr.

Yusuf noted that the surge in crude oil prices and elevated marine insurance costs have disrupted shipping routes, leading to higher import costs that exert upward pressure on domestic prices. Despite these challenges, the year-on-year increase in inflation shows a moderating trend, with a month-on-month increase of 2.13% in April and 1.75% in May.

Food inflation remains a particular concern at 16.96%, driven by insecurity affecting food production in key regions. Yusuf emphasized that addressing insecurity is critical for managing inflation and improving food security in Nigeria.