Nigeria's energy inflation drops to 4.37% in July, lowest in four months

Nigeria's energy inflation rate fell to 4.37% in July 2026, its lowest level in four months, down from 9.83% in June—a 5.46 percentage‑point drop, according to the National Bureau of Statistics. The rate had risen from 11.20% in January to 12.57% in February, then eased to 9.89% in March, 4.50% in April, climbed to 5.73% in May and jumped again to 9.83% in June before the July descent.

Despite the improvement, energy costs remain the biggest driver of inflation perceptions. A Central Bank of Nigeria survey showed 60.9% of firms and 55.9% of households reported higher spending due to inflation in July, with energy costs scoring 74.1 points for firms and 61.9 for households—the highest among all categories. This suggests that lower official inflation has not yet eased the financial strain on many Nigerians.

Additional context: the Nigerian Midstream and Downstream Petroleum Regulatory Authority has proposed rules banning fuel‑price coordination and supply restrictions by oil firms, amid allegations of coordinated pricing. Dangote Refinery cut the ex‑depot price of Premium Motor Spirit to ₦1,075 per litre on July 2, but global oil price volatility—worsened by fresh US‑Iran tensions—keeps domestic prices uncertain. Nairametrics earlier noted that Nigerians are postponing major purchases such as cars, homes and appliances as high living costs and borrowing rates squeeze budgets.

Given these mixed signals, will you adjust your spending plans, hold off on big‑ticket items, or explore alternatives like car‑pooling or solar power to mitigate ongoing energy‑cost pressure?

SOURCE: https://nairametrics.com/2026/08/20/energy-inflation-drops-to-4-37-in-july-lowest-in-four-months/