Nigeria's inflation rate climbed to 15.93 per cent in May 2026, extending a three-month upward trend as rising food prices, energy costs, insecurity and global geopolitical tensions continued to exert pressure on consumer prices and business operations.
The latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Monday showed that headline inflation increased from 15.69 per cent in April to 15.93 per cent in May, representing a 0.24 percentage point rise.
The development marks the third consecutive monthly increase in annual inflation since March, although the rate remains significantly lower than the 26.06 per cent recorded in May 2025.
According to the NBS, the CPI rose from 138.3 points in April to 140.7 points in May, reflecting a sustained increase in the prices of goods and services across the country.
Despite the rise in annual inflation, the pace of price increases slowed during the month. Month-on-month inflation declined to 1.75 per cent in May from 2.13 per cent recorded in April, suggesting that while prices are still rising, they are doing so at a slower pace.
Food prices remained the biggest driver of inflation. Food inflation stood at 16.96 per cent year-on-year, with the NBS attributing the increase to higher prices of key staples such as onions, tomatoes, maize, melon, cassava products, yam, sweet potatoes, ginger, crayfish and cowpea.
The bureau noted that food inflation on a monthly basis eased to 2.98 per cent in May from 3.63 per cent in April, indicating some moderation in the rate of increase.
An analysis of inflation components showed that food and non-alcoholic beverages contributed the largest share to headline inflation. Other major contributors included restaurants and accommodation services, transportation, housing, electricity, gas, education and healthcare services.
The report further revealed that the average inflation rate for the 12 months ending May 2026 stood at 18.36 per cent, a notable improvement from the 30.57 per cent recorded during the same period in 2025.
Reacting to the figures, operators in the organised private sector blamed a combination of international and domestic challenges for the persistent inflationary pressure.
Deputy President of the National Association of Small-Scale Industrialists (NASSI), Segun Kuti-George, said developments in the Middle East had significantly impacted global energy markets, contributing to higher production and transportation costs.
He argued that tensions involving Iran and disruptions to oil trade routes had increased the cost of petroleum products and cooking gas, worsening the burden on households and manufacturers.
According to him, although petrol prices have witnessed modest reductions in some areas, cooking gas remains largely unaffordable for many Nigerians.
Kuti-George expressed hope that improving diplomatic relations and the easing of tensions in the region would eventually bring relief to global energy markets and help stabilise domestic prices.
Also commenting, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the inflation figures reflected the lingering effects of external economic shocks on Nigeria's economy.
He noted that rising crude oil prices, higher shipping charges, increased insurance costs and disruptions in international supply chains had combined to raise import costs and push up domestic prices.
Yusuf, however, pointed out that inflationary pressures appeared to be moderating gradually, citing the slowdown in month-on-month headline and food inflation rates.
The economist identified food, transportation, housing, energy, education and healthcare as the sectors contributing most significantly to inflation, warning that sustained increases in food prices continued to weaken household purchasing power.
He also highlighted insecurity as a major challenge to agricultural production, saying attacks on farming communities had reduced cultivated land, disrupted food supply chains and increased logistics costs.
According to him, efforts to reduce inflation should focus on addressing structural constraints in the economy, particularly those affecting food production and distribution.
President of the Association of Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, attributed the inflation increase to high fuel prices, insecurity and inefficiencies in the country's import system.
He said insecurity had made it increasingly difficult for farmers to access their farmlands, thereby reducing food output and contributing to rising food prices.
Egbesola also criticised operational challenges associated with the National Single Window platform, arguing that delays in cargo processing had increased demurrage costs for importers, expenses that are ultimately passed on to consumers.
While expressing optimism that easing tensions between the United States and Iran could improve global economic conditions, he cautioned that any positive impact on Nigeria's inflation rate would take several months to materialise.
Further details from the NBS report showed that core inflation, which excludes food and energy prices, stood at 16.82 per cent year-on-year in May. On a monthly basis, however, core inflation accelerated sharply to 1.94 per cent from 1.03 per cent in April, indicating that underlying price pressures remain strong.
Urban inflation was recorded at 16.07 per cent, while rural inflation stood at 15.60 per cent.
Services inflation remained elevated at 17.92 per cent, reflecting persistent cost increases across several service-related sectors.
State-by-state analysis showed that Yobe recorded the highest annual inflation rate at 24.94 per cent, followed by Anambra and Sokoto states. Niger State posted the lowest inflation rate at 3.07 per cent, ahead of Plateau and Edo states.
In terms of food inflation, Adamawa recorded the highest annual rate, followed by Kwara and Rivers states, while Borno recorded food price deflation during the period under review.
The latest inflation figures underscore the continuing challenges facing households and businesses despite improvements from the exceptionally high inflation levels recorded a year ago. Analysts say addressing insecurity, reducing logistics costs and easing energy-related pressures will be critical to achieving sustained price stability in the months ahead.
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