Nigeria’s energy inflation rate more than doubled on a year-on-year basis to 10.85% in September 2026, rising sharply from 4.69% in August as energy price pressures intensified across the country.
The National Bureau of Statistics (NBS) disclosed this in its September 2026 Consumer Price Index (CPI) report, released on Thursday, October 15, 2026, which showed a significant acceleration in the annual rate of increase in energy prices.
The sharp rise in energy inflation came despite a moderation in Nigeria’s overall inflation rate, which eased to 14.63% in September from 15.39% in August, highlighting the divergence between energy costs and broader consumer price movements.
According to the NBS, energy inflation increased by 6.16 percentage points between August and September, representing a 131.34% surge in the annual rate within one month.
An analysis by Nairametrics of the NBS monthly CPI reports shows that energy inflation has experienced considerable volatility throughout 2026, with periods of sharp increases followed by significant declines.
The latest figures show that September recorded the third-highest annual energy inflation rate in the first nine months of 2026, behind February and January.
They also indicate that the renewed pressure on energy prices has interrupted the relatively low inflation readings recorded in July and August.
The renewed acceleration in energy inflation comes amid sustained increases in domestic fuel prices following the outbreak of the war involving Iran, Israel and the United States, which has disrupted global oil markets and driven up crude oil prices.
The impact of rising energy costs is also reflected in the Central Bank of Nigeria’s (CBN) July 2026 Inflation Expectations Survey, which identified energy expenditure as a major concern for businesses and households.
According to the survey, 60.9% of businesses reported higher spending due to inflation, compared with 55.9% of households.
Energy-related expenses, including petrol, diesel and electricity, ranked highest among the factors influencing inflation perceptions, scoring 74.1 points among businesses and 61.9 points among households.
The findings underscore the significant burden of energy costs on Nigerians, particularly as higher fuel and electricity expenses affect business operations, transportation and household finances.
The Federal Government has recently introduced measures aimed at reducing petrol costs and easing the pressure of high fuel prices on consumers, particularly public transport operators.
However, the arrangement has attracted concerns from independent oil marketers, who argue that limiting the discount to NNPC outlets could restrict its benefits, particularly in communities with limited access to the company’s retail stations.
Representatives of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have consequently urged the government to extend the programme from 30 to 60 days and accommodate independent marketers to improve nationwide distribution.
