Nigeria’s inflation rate edged higher in March 2026, reflecting the economic impact of the ongoing Israel–United States–Iran war, which has disrupted global oil supply and driven up energy costs.
Before the conflict began in late February, crude oil prices hovered around $70 per barrel. However, supply disruptions—particularly around the Strait of Hormuz—pushed prices to about $120 per barrel in March, intensifying cost pressures across economies, including Nigeria.
According to data from the National Bureau of Statistics, Nigeria’s headline inflation rose from 15.06 per cent in February to 15.38 per cent in March 2026. On a month-on-month basis, inflation climbed sharply to 4.18 per cent, compared to 2.01 per cent recorded in February, indicating a faster rise in prices within a short period.
Food inflation stood at 14.31 per cent year-on-year in March, while the monthly rate was 4.17 per cent. The increase was largely driven by higher prices of staple food items such as yam, cassava, ginger, groundnuts, potatoes, and ogbono. Over a 12-month period, the average consumer price index rose by 20.05 per cent, showing a continued upward trend compared to the previous year.
At the state level, Bayelsa recorded the highest inflation rate at 27.37 per cent, followed by Sokoto at 26.03 per cent and Bauchi at 23.67 per cent. In contrast, Osun, Kano, and Kaduna reported relatively lower inflation figures. On a monthly basis, Zamfara, Bauchi, and Sokoto experienced the fastest price increases, while Lagos, Akwa Ibom, and Rivers saw the slowest rise.
Economic analysts have raised concerns about the renewed inflationary pressure. Muda Yusuf noted that while inflation had shown signs of easing in recent months, the latest figures point to a reversal driven largely by rising energy costs. He explained that higher fuel and energy prices continue to affect production, transportation, and distribution across the economy.
He warned that the trend could weaken purchasing power, increase the cost of living, and deepen poverty levels. To address the situation, experts are urging governments to invest more in agriculture and improve transportation systems to help stabilise prices and ease inflationary pressures.
