Nigeria’s inflation rate rose for a third consecutive month in May, driven largely by accelerating food prices and renewed pressure on household costs in Africa’s most populous economy.
According to data released by the National Bureau of Statistics, headline inflation increased to 15.93 percent year-on-year in May, up from 15.69 percent in April, marking a continued reversal after nearly a year of gradual easing.
The latest figures suggest that price stability remains fragile in Nigeria, where inflationary pressures had previously shown signs of moderation for 11 straight months before rebounding in March.
The recent uptick has been partly linked to global energy market disruptions following geopolitical tensions involving the United States, Israel and Iran, which pushed up international oil and fuel prices and added to domestic cost pressures.
Food inflation — the most important component of Nigeria’s consumer price basket — rose even more sharply, climbing to 16.96 percent year-on-year in May from 16.06 percent in April.
More Read
Rising food costs continue to have a disproportionate impact on Nigerian households, where a large share of income is spent on basic staples. Analysts say supply chain constraints, transportation costs, insecurity in agricultural regions and currency volatility have all contributed to persistent food price inflation.
The central bank has maintained that the recent rise in inflation is likely to be temporary, although it has acknowledged that global and domestic factors are complicating the disinflation path.
Nigeria’s monetary authorities have been attempting to stabilise prices through tighter policy measures, even as economic growth remains under pressure and households face elevated living costs.
The inflation data comes at a sensitive time for policymakers as they balance efforts to restore price stability with the need to support economic recovery in sectors such as agriculture, manufacturing and services.
Economists note that food inflation remains the key structural challenge for Nigeria, given its strong correlation with transport costs, exchange rate fluctuations and disruptions in domestic food supply chains.
The country’s broader economic environment has also been affected by currency volatility and reforms aimed at unifying exchange rates and reducing distortions in the foreign exchange market.
Despite these reforms, businesses and consumers continue to face elevated costs, with imported goods particularly affected by exchange rate movements.
Analysts say sustained inflation above central bank targets could limit room for monetary easing in the near term, potentially constraining credit growth and investment.
The latest reading adds to concerns that Nigeria’s inflation trajectory remains uncertain, with risks tilted toward further increases if global energy prices remain elevated or domestic food supply conditions worsen.
More Read
For now, policymakers are expected to continue monitoring price developments closely while weighing additional measures to stabilise the economy and ease pressure on households.
