Nigeria Faces Inflation as Brent Crude Hits $112 Per Barrel

As of March 20, 2026, Brent crude oil prices surged by 8.22% to $112 per barrel, intensifying pressure on Nigeria's energy market and raising concerns about economic stability. The Dangote Petroleum Refinery has raised petrol prices five times in March, with adjustments from N774 to N1,275 per liter.

Coastal prices have also risen significantly, reflecting steep percentage increases. The adjustments have led to a 0.079% rise in transport costs, contributing to an overall inflation rate of 42% for petrol.

The Central Bank of Nigeria (CBN) is expected to maintain a cautious stance, with potential inflation risks leading to a steady interest rate, similar to the U.S. Federal Reserve's approach.

The rise in fuel prices has already increased transport costs by 20%, further squeezing household budgets as food inflation remains above 12% year-on-year. Dr.

Adebayo Olufemi has warned that the current rally in crude prices threatens to exacerbate domestic inflation in Nigeria, which remains heavily reliant on imported refined fuel.