Nigeria's Energy Inflation Hits 10.85% Amid Price Surge

Nigeria's energy inflation rate more than doubled to 10.85% in September 2026, rising sharply from 4.69% in August, according to the National Bureau of Statistics (NBS) in its Consumer Price Index report released on October 15, 2026. This significant increase in energy prices occurred despite a decrease in the overall inflation rate, which fell to 14.63% from 15.39% in August.

The NBS reported that energy inflation rose by 6.16 percentage points between August and September, marking a 131.34% surge in the annual rate within one month. September recorded the third-highest annual energy inflation rate in 2026, following January and February.

The rise in energy costs is linked to increased domestic fuel prices due to the ongoing conflict involving Iran, Israel, and the United States, which has disrupted global oil markets. The Central Bank of Nigeria's July 2026 Inflation Expectations Survey indicated that 60.9% of businesses and 55.9% of households reported higher spending due to inflation, with energy-related expenses being the primary concern.

The Federal Government has introduced measures to reduce petrol costs, but independent oil marketers have raised concerns about the limitations of these measures.