Fuel, food price cuts to push Nigeria’s inflation to 12.94% in 2026

The Central Bank of Nigeria has said that the country’s inflation would moderate to 12.94 percent in 2026, pushed by declining prices of fuel and food.

CBN disclosed its macroeconomic outlook for Nigeria in 2026, released on Wednesday.

According to the apex bank projections, the economy of Africa’s most populous country is expected to grow by 4.49 percent.

CBN hinged the expected growth rate on continued gains from broad-based structural reforms and a gradually easing monetary policy stance.

“Headline inflation is projected to moderate to an estimated average of 12.94 percent in 2026, driven by declining food and premium motor spirit (PMS) prices,” the apex bank said.

Recall that last week, Nigeria witnessed several drops in fuel prices owing to an ongoing price war in the country’s oil downstream sector.

Dangote Refinery reduced its gantry petrol price drastically to edge out petrol marketers, leading to fuel prices hovering around N739 and N910 per liter nationwide.

November’s 2025 National Bureau of Statistics inflation data said Nigeria’s food inflation dropped to 11.08 percent.