Nigeria’s energy inflation rose to 4.69% in August 2026, reversing the decline recorded in July and highlighting the continued pressure of energy costs on households and businesses. The latest figure, contained in the Consumer Price Index report released by the National Bureau of Statistics (NBS) on September 15, represents a 0.29 percentage-point increase from the 4.40% recorded in July.
The increase came despite a marginal easing in Nigeria’s headline inflation, which fell to 15.39% in August from 15.43% in July, marking the third consecutive month of disinflation. However, energy price movements remained uneven throughout the year, with energy inflation reaching a high of 12.90% in February before dropping sharply to 4.60% in April. It later climbed to 5.73% in May and 9.90% in June before falling to its yearly low of 4.40% in July.
Despite the recent moderation, energy costs continue to weigh heavily on Nigerian households and businesses. Electricity, petrol and diesel costs affect everything from transportation and household expenses to the cost of operating businesses. A recent Central Bank of Nigeria survey also showed that energy costs remained the biggest contributor to inflation perceptions, with energy recording a perception score of 74.1 points among firms and 61.9 points among households.
The pressure is particularly visible in petrol prices and the growing reliance on alternative power sources. Petrol is currently selling at about N1,400 to N1,450 per litre across major Nigerian cities, increasing the cost for households and businesses that depend on generators. Meanwhile, Nigerians seeking alternatives such as solar power face significant upfront expenses, with small systems reportedly costing hundreds of thousands of naira and larger installations running into several millions.
For many households, the challenge is therefore not simply whether energy inflation is rising or falling, but how much energy costs take out of their monthly income. With the minimum wage at N70,000, even the lower end of the reported cost of installing a small solar system represents a substantial financial commitment. The August energy inflation figure therefore underscores a wider reality: while overall inflation is showing signs of moderation, the cost of keeping homes, businesses and daily activities running remains a major concern for Nigerians.
source: nairametrics
