Rising Food Costs and Fuel Prices Deepen Economic Strain on Nigerians
Story: written by Myra March 17,2026
The cost of living in Nigeria continues to climb as food prices surge alongside escalating fuel and energy costs, placing increased pressure on households across the country.
Latest data released by the National Bureau of Statistics shows that food inflation rose sharply to 12.12 percent in February 2026, up from 8.89 percent recorded in January. The increase reflects higher prices of essential food items such as beans, cassava, crayfish, yam flour, millet flour, and vegetables.
Despite this spike, the country’s overall inflation rate recorded a slight drop to 15.06 percent from 15.10 percent in January. However, experts note that the marginal decline offers little real relief, as the monthly inflation rate indicates that prices are still rising at a faster pace.
The worsening food crisis is unfolding amid a sharp increase in petrol prices nationwide. Fuel prices have surged to between N1,261 and N1,330 per litre in several parts of the country, up from previous levels of N875 to N900 per litre.
The price hike follows adjustments by the Dangote Refinery, which recently increased its petrol loading cost to N1,175 per litre due to rising global crude oil prices. This triggered further increases at retail outlets, worsening transportation costs and pushing up the prices of goods and services.
Analysts say the combined effect of rising food and fuel costs is intensifying hardship, especially for low- and middle-income earners who spend a significant portion of their income on food.
Renowned economist Ayo Teriba explained that the increase in food prices may partly be due to seasonal economic patterns, as activities typically pick up after the start of the year.
He noted that while prices often stabilize in January, they tend to rise again in February as economic activity increases. However, he cautioned that it is still too early to determine whether the current trend signals a sustained rise in inflation or short-term fluctuations.
Teriba also raised concerns about inconsistencies in past inflation data, suggesting that more time is needed to establish a clear pattern.
On his part, Godwin Oyedokun, a professor of accounting and finance, said the slight drop in headline inflation does not reflect the real economic situation faced by Nigerians.
According to him, the continued rise in food prices is more alarming, as it directly affects household welfare and purchasing power. He warned that increasing food costs could worsen poverty levels and limit access to basic nutrition.
Oyedokun attributed the trend to multiple structural challenges, including high energy costs, insecurity in farming regions, poor transportation systems, and post-harvest losses. He described the situation as “cost-push inflation,” where rising production and logistics costs are passed on to consumers.
He called on the government to implement urgent reforms, including improving security in agricultural areas, investing in storage and transport infrastructure, and providing targeted support to farmers.
The development comes as President Bola Ahmed Tinubu is on an official visit to the United Kingdom, highlighting ongoing economic concerns at home.
Experts warn that without strong policy intervention, Nigerians may continue to face worsening economic hardship in the months ahead.
