By Boluwatife Oshadiya | June 15 2026
Key Points
- Nigeria’s headline inflation rate moderated to 15.93% year-on-year in May 2026, down sharply from 26.06% recorded a year earlier
- Food inflation slowed to 16.96% year-on-year, although prices of major staples including onions, tomatoes, maize, yam, and pepper remained elevated
- Yobe, Anambra, and Sokoto recorded the highest inflation rates among states, while Niger, Plateau, and Edo posted the lowest
Main Story
Nigeria’s inflation rate continued its downward trajectory in May 2026, with headline inflation settling at 15.93% year-on-year, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).
The figure represents a significant decline from the 26.06% recorded in May 2025, although it edged slightly higher than the 15.69% posted in April 2026. On a month-on-month basis, inflation eased to 1.75%, compared with 2.13% in April, suggesting a gradual moderation in the pace of price increases across the economy.
The NBS report showed that the CPI rose to 140.7 points in May from 138.3 points in April, reflecting continued increases in the average price level despite the broader slowdown in annual inflation.
Food inflation remained one of the most significant drivers of consumer prices. The food inflation rate stood at 16.96% year-on-year, down from 24.55% recorded in May 2025. Month-on-month food inflation also slowed to 2.98% from 3.63% in April.
According to the statistics agency, increases in the prices of onions, maize grains, tomatoes, pepper, yam tubers, cassava flour, crayfish, melon (egusi), and water yam contributed significantly to food price pressures during the month.
Urban inflation was recorded at 16.07% year-on-year, while rural inflation stood at 15.60%. On a monthly basis, urban consumers experienced a faster rise in prices at 1.99% compared with 1.17% in rural areas.
The report further showed that core inflation, which excludes volatile agricultural produce and energy prices, eased to 16.82% year-on-year from 24.92% in the corresponding period of 2025. Services inflation remained relatively elevated at 17.92%, highlighting persistent cost pressures in sectors such as hospitality, transportation, healthcare, and education.
Among Nigeria’s states, Yobe recorded the highest all-items inflation rate at 24.94%, followed by Anambra at 23.29% and Sokoto at 22.60%. Niger State posted the lowest inflation rate at 3.07%, while Plateau and Edo followed at 7.10% and 7.73% respectively.
What’s Being Said
“The May 2026 CPI figures indicate that inflationary pressures are gradually easing compared with the levels seen a year ago, although food prices remain a major concern for households,” the National Bureau of Statistics stated in its monthly inflation report.
Economic analysts say the continued moderation reflects the impact of tighter monetary policy by the Central Bank of Nigeria, improved exchange-rate stability, and base effects following the inflation surge experienced throughout 2024 and 2025.
However, market observers warn that persistent food supply challenges, insecurity in key farming regions, transportation costs, and climate-related disruptions could continue to place upward pressure on food prices in the months ahead.
What’s Next
- Investors and policymakers will closely monitor upcoming inflation releases to determine whether the disinflation trend can be sustained through the second half of 2026
- The Central Bank of Nigeria’s next Monetary Policy Committee meeting is expected to assess the latest inflation data when considering future interest rate decisions
- Economists will also watch developments in food production, exchange-rate stability, and energy costs, which remain key drivers of consumer prices
Bottom Line
The Bottom Line: Nigeria’s inflation picture continues to improve compared with the crisis levels recorded in 2025, offering some relief for businesses and households. However, stubborn food prices and elevated service-sector costs suggest that the fight against inflation is not yet over, and policymakers will need to balance price stability with efforts to stimulate economic growth.
