Rising energy costs could reverse Nigeria’s ease in inflation, CPPE warns
The Centre for the Promotion of Private Enterprise (CPPE) has warned that rising energy costs could reverse Nigeria’s recent disinflation gains, despite headline inflation easing to 14.63per cen in September 2026.
The policy think tank said the sharp acceleration in monthly energy inflation poses a threat to the broader decline in consumer prices, calling for measures to strengthen domestic energy resilience and reduce production and distribution costs.
The warning was contained in a CPPE’s policy brief on Nigeria’s September 2026 inflation report released by the National Bureau of Statistics (NBS).
According to the organisation, monthly energy inflation accelerated to 5.38per cent in September from 0.36per cent in August, an increase of 5.02 percentage points, while year-on-year energy inflation stood at 10.85per cent.
CPPE described the acceleration in monthly energy inflation as one of the most significant warning signals in the September inflation report, noting that energy is a critical input across almost every sector of the economy.
Higher petrol, diesel and gas prices increase transportation, distribution and production costs, with potential knock-on effects on food prices and core inflation.
The organisation linked the pressure to geopolitical tensions in the Middle East, which have heightened volatility in global petroleum markets and exposed Nigeria to external energy-price shocks.
While exchange rate stability can help moderate imported inflation, the CPPE said it cannot fully offset rising international energy costs.
It warned that sustained increases in energy prices could undermine the recent disinflationary trend, arguing that lasting price stability would require reducing the economy’s structural dependence on expensive and volatile energy sources.
“The policy priority should therefore be to strengthen domestic energy resilience through reliable electricity supply, expansion of CNG infrastructure, greater adoption of electric mobility and improved domestic refining efficiency,” the brief said.
