Nigeria's energy inflation rate increased to 4.69% in August 2026, up from 4.40% in July, reversing the decline recorded in the previous month, according to the Consumer Price Index report published by the National Bureau of Statistics.
The movement represents a 0.29 percentage-point rise in the annual change in energy prices. The NBS released the figures on Tuesday, September 15. The uptick occurred alongside a marginal easing of headline inflation to 15.39% in August from 15.43% in July, marking a third consecutive month of disinflation.
Data covering January to August 2026 shows significant fluctuation in energy price pressures. Energy inflation stood at 11.17% in January and peaked at 12.90% in February, before falling to 9.90% in March and 4.60% in April. It then rose to 5.73% in May, accelerated to 9.90% in June, and dropped to a year-low of 4.40% in July before edging up to 4.69% in August.
In August, the rate was 0.09 percentage points above the 4.60% recorded in April, making it the third-lowest reading so far this year. Although energy inflation has stayed below 6% since May, the trend has been uneven, with increases in June and again in August.
Energy costs continue to weigh on Nigerian households and businesses through electricity bills, transport expenses, and operating costs. A Central Bank of Nigeria survey found that firms and households expect inflation-related spending pressures to ease over the next six months, yet energy costs remain the biggest driver of inflation perceptions. In July, 60.9% of firms reported higher expenditure due to inflation, compared with 55.9% of households. Energy costs, including petrol, diesel, and electricity, recorded the highest inflation perception score among firms at 74.1 points and among households at 61.9 points.
With unreliable grid power, households and businesses increasingly depend on generators and solar installations. Premium Motor Spirit now sells between N1,400 and N1,450 per litre across major cities; in Lagos, most filling stations dispensed petrol at N1,400 to N1,430 per litre, while MRS outlets sold at N1,395 per litre. Solar installation costs remain substantial: a 1kW–3kW system costs between N800,000 and N2.5 million, medium 3.5kW–5kW systems range from N2.5 million to N8 million, and systems of 10kW and above can cost N10 million to N50 million or more. With the minimum wage at N70,000, even the lower end of a small solar system exceeds 11 times the monthly minimum wage, while petrol generator users continue to face recurring fuel expenses.
