Nigeria’s energy inflation climbs to 4.69% after July low

Nigeria’s energy inflation rate climbed to 4.69% in August 2026, up from 4.40% in July, reversing the decline recorded in the previous month.

The latest figure represents a 0.29 percentage-point increase in the annual change in energy prices, according to the latest Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).

The NBS released the figures on Tuesday, September 15.

The slight increase in energy inflation came as Nigeria’s headline inflation rate eased marginally to 15.39% in August 2026 from 15.43% in July, extending the country’s disinflation trend for a third consecutive month.

What the data is saying

Nairametrics’ analysis of energy inflation figures contained in the monthly CPI reports released by the NBS from January to August 2026 shows that energy price pressures fluctuated significantly during the period.

• Energy inflation rose from 4.40% in July to 4.69% in August, representing a 0.29 percentage-point increase, or about 6.6% relative to July’s rate.
• August’s rate was also marginally higher than the 4.60% recorded in April, by 0.09 percentage points, making August the third-lowest energy inflation reading so far this year.
• The highest energy inflation rate recorded between January and August was 12.90% in February, following 11.17% in January. The rate subsequently fell to 9.90% in March and dropped sharply to 4.60% in April before rising to 5.73% in May.
• Energy inflation accelerated again to 9.90% in June, before falling to its lowest level of the year at 4.40% in July. It then increased slightly to 4.69% in August.

The movement shows that while energy inflation has remained below 6% since May, the downward trend has not been consistent, with the rate increasing in June and again in August.

Effect of high energy in Nigeria

High energy costs have a direct effect on Nigerians, from electricity bills and transportation costs to the cost of running businesses and household activities.

• Despite the moderation in the official energy inflation rate, energy costs remain a major factor shaping how Nigerian households and businesses perceive inflation.
• According to the latest CBN survey, Nigerian firms and households expect inflation-related spending pressures to ease over the next six months, although energy costs remain the biggest driver of inflation perceptions.
• The survey showed that 60.9% of firms reported an increase in expenditure due to inflation in July, while the corresponding figure for households was 55.9%.
• Energy costs, including PMS, diesel and electricity, recorded the highest inflation perception score among firms at 74.1 points. Energy costs also ranked highest among households at 61.9 points.

The figures suggest that the moderation in energy inflation has not yet eliminated the broader impact of energy costs on household and business finances.

What you should know

With Nigeria’s unstable power supply, the impact of energy costs extends beyond petrol, as households and businesses increasingly rely on alternative sources of electricity, including generators and solar energy.

• Petrol prices have increased across major Nigerian cities, with retail outlets now selling Premium Motor Spirit (PMS) between N1,400 and N1,450 per litre.
• Checks by Nairametrics show that as of Sunday, most filling stations in Lagos were dispensing petrol between N1,400 and N1,430 per litre, while MRS stations sold at N1,395 per litre.
• For those dependent on generators, high petrol prices have increased the cost of keeping homes and businesses running. At the same time, households seeking to reduce their dependence on generators and the national grid face significant upfront costs when installing solar systems.
• Nigerians who are turning to solar for power generation also grapple with high installation costs. A study by Nairametrics earlier this year shows that a 1kW–3kW solar system costs between N800,000 and N2.5 million, while medium-sized 3.5kW–5kW systems cost between N2.5 million and N8 million.

Larger systems of 10kW and above can cost N10 million to N50 million or more, depending on the system and installation requirements.

These costs are particularly significant for low-income households, given that Nigeria’s current minimum wage is N70,000. This means that even the lower end of the cost of a small solar system is more than 11 times the monthly minimum wage, while households relying on petrol generators continue to face recurring fuel expenses.