Nigeria’s Inflation Drop Faces Energy Cost Threat

The Centre for the Promotion of Private Enterprise, CPPE, has raised concerns that Nigeria's recent reduction in inflation may be undermined by escalating energy costs. The organization warned that rising petrol, diesel, and gas prices could potentially reverse the progress made in decreasing headline inflation.

According to CPPE's Policy Brief on the September 2026 inflation report, energy inflation saw a sharp increase, rising from 0.36 per cent in August to 5.38 per cent in September. Year-on-year energy inflation was recorded at 10.85 per cent, highlighting the growing pressure on the economy.

Dr. Muda Yusuf, Director General of CPPE, emphasized that the 5.02 percentage points surge in energy inflation is the most critical warning in the report. He noted that energy is a vital input across nearly all sectors, and its rising costs pose a significant risk to price stability.