Inflation Climbs to 15.38% as Global Crisis Hits Nigeria’s Economy

Nigeria’s inflation rate rose to 15.38 per cent in March 2026, up from 15.06 per cent recorded in February, reflecting the growing impact of global supply chain disruptions triggered by the Israel–U.S.–Iran conflict.

Before the outbreak of the war on February 28, crude oil traded at about $70 per barrel. However, tensions in the Strait of Hormuz disrupted oil shipments, pushing prices to nearly $120 per barrel in March, with ripple effects across global and local markets.

According to the National Bureau of Statistics (NBS), the Consumer Price Index (CPI) showed a sharp month-on-month increase of 4.18 per cent in March, compared to 2.01 per cent in February—indicating a faster rise in the general price level.

Food inflation stood at 14.31 per cent year-on-year, while month-on-month food inflation dropped slightly to 4.17 per cent from 4.69 per cent in February. The NBS attributed price increases to staples such as yam, ginger, cassava, groundnuts, Irish potatoes, and ogbono.

On a broader scale, the average CPI over the 12 months ending March 2026 rose by 20.05 per cent, up from 18.58 per cent recorded in the same period in 2025.

State-by-state data showed wide disparities. Bayelsa recorded the highest inflation rate at 27.37 per cent, followed by Sokoto (26.03 per cent) and Bauchi (23.67 per cent). Meanwhile, Osun (5.25 per cent), Kano (9.85 per cent), and Kaduna (10.38 per cent) posted the slowest increases.

Month-on-month figures revealed Zamfara (10.77 per cent), Bauchi (9.37 per cent), and Sokoto (9.05 per cent) as the hardest hit, while Lagos (1.54 per cent), Akwa Ibom (1.8 per cent), and Rivers (1.89 per cent) recorded the least increases.

Reacting to the figures, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), described the rise as a troubling sign of renewed inflationary pressure. He warned that the trend highlights the fragile nature of recent gains in controlling inflation.

Yusuf pointed to rising energy costs—driven by dependence on diesel, petrol, and gas—as a major factor pushing up production and transportation expenses. He cautioned that continued inflation could weaken purchasing power, increase poverty levels, and widen inequality.

He called on government authorities to prioritise investments in agriculture and public transportation to ease cost pressures and stabilise prices.