Fuel and Food Price Declines Seen Driving Nigeria’s Inflation Down to 12.94% in 2026 — CBN
Story: written by Joseph January 2,2026
Nigeria’s inflation rate is projected to ease to 12.94 percent in 2026, supported by falling fuel and food prices, according to the Central Bank of Nigeria (CBN).
The apex bank disclosed this in its 2026 macroeconomic outlook released on Wednesday, noting that price stability and sustained reforms would shape the country’s economic performance.
CBN also forecast that Africa’s most populous nation will record an economic growth rate of 4.49 percent in 2026. The growth outlook, the bank said, is anchored on gains from wide-ranging structural reforms and a gradually relaxed monetary policy environment.
“Headline inflation is expected to decline to an average of 12.94 percent in 2026, largely on the back of lower food prices and reduced costs of premium motor spirit (PMS),” the bank stated.
The projection follows recent reductions in petrol prices across Nigeria, triggered by intense competition in the downstream oil sector. Dangote Refinery recently slashed its gantry price for petrol in a bid to outcompete marketers, pushing pump prices to between about ₦739 and ₦910 per litre nationwide.
Meanwhile, data from the National Bureau of Statistics showed that Nigeria’s food inflation rate dropped to 11.08 percent in November 2025, reinforcing expectations of easing price pressures.
