Nigeria's Inflation Drops to 14.63% Amid Rising Energy Costs

Nigeria's headline inflation rate eased to 14.63% in September 2026, down from 15.39% in August, as reported by the National Bureau of Statistics (NBS). This moderation in inflation was primarily due to a decrease in food prices, which fell by 1.55% month-on-month, with food inflation standing at 19.59% year-on-year.

The NBS attributed this decline to changes in the prices of various food items, including rice, maize flour, and fresh vegetables. However, the relief was offset by a significant increase in energy inflation, which more than doubled year-on-year to 10.85%, up from 4.69% in August.

This surge in energy costs was linked to rising domestic fuel prices, exacerbated by the ongoing conflict involving Iran, Israel, and the United States, which disrupted global oil markets. In September, petrol prices in Lagos ranged from N1,400 to N1,430 per litre, while in Abuja, they were between N1,400 and N1,450 per litre.

The Federation Account Allocation Committee (FAAC) distributed N2.428 trillion among the Federal Government, states, and local councils for September 2026.