Nigeria’s persistent inflationary pressure has pushed Africa’s most populous nation to the bottom of global quality of life rankings, as households and businesses continue to struggle under worsening economic conditions.
The country’s inflation rate rose for the third consecutive month in 2026, reaching 15.93 percent in May.
According to the National Bureau of Statistics (NBS) Consumer Price Index and inflation report, headline inflation and food inflation increased to 15.93 percent and 16.96 percent in May, up from 15.69 percent and 16.09 percent respectively in April.
This represents increases of 0.24 and 0.87 percentage points in headline and food inflation respectively.
NBS data also showed that on a month on month basis, headline inflation stood at 1.75 percent, while food inflation reached 2.98 percent.
The figures indicate a sustained inflationary trend over the last three months, driven largely by rising costs of food, transportation, housing, and energy.
The impact has been significant, resulting in a higher cost of living and reduced purchasing power for most Nigerians. This decline in living standards is reflected in Nigeria’s position at the bottom of the Quality of Life Index 2026, according to data released by Numbeo. Nigeria ranked alongside Sri Lanka and Bangladesh in the lowest tier of the global index.
The ranking evaluates countries based on purchasing power, healthcare quality, safety, cost of living, pollution, traffic congestion, housing affordability, and climate.
Rising inflation deepens hardship for Nigerians, says Oyedokun
Professor of Accounting and Finance at Lead City University, Godwin Oyedokun, expressed concern over Nigeria’s rising inflation rate, warning that the continued increase is worsening economic hardship for households and businesses nationwide.
He noted that the third consecutive rise highlights persistent economic pressures, especially amid increasing food and fuel prices.
According to him, the latest figures show that many Nigerians remain burdened by the high cost of living despite signs of macroeconomic stability in some sectors.
“The third consecutive rise in Nigeria’s inflation rate underscores the persistence of economic pressures facing households and businesses. With fuel and food costs driving the increase, the data confirm that many Nigerians continue to struggle with a high cost of living despite signs of macroeconomic stabilisation in some areas,” he said.
Oyedokun stated that the inflation figures reflect the harsh reality that essential goods and services are becoming increasingly unaffordable for many families.
He explained that as inflation continues to outpace income growth, consumer purchasing power weakens, forcing households to reduce spending, savings, and investments in vital sectors such as education and healthcare.
“The figures reflect the harsh reality that essential items such as food, transportation, and energy remain increasingly unaffordable for many families. As inflation outpaces income growth, purchasing power declines, forcing households to cut back on consumption, savings, and investment in education and healthcare,” Oyedokun said.
He further noted that rising fuel prices have broad consequences across the economy, increasing transportation and production costs that are ultimately passed on to consumers.
He added that food inflation remains especially harmful to low income households, as a substantial portion of their earnings is spent on basic needs.
“Higher fuel prices have a multiplier effect across the economy because they increase transportation and production costs, which are ultimately passed on to consumers. At the same time, rising food inflation places a disproportionate burden on low-income households, who spend a significant share of their earnings on basic necessities,” he said.
Oyedokun emphasized that the persistent rise in inflation highlights the urgent need for policy responses beyond monetary tightening.
He urged the government to strengthen agricultural productivity, improve security in food producing communities, invest in critical infrastructure, and reduce logistics costs to ease inflationary pressures.
“The sustained upward trend in inflation highlights the need for policies that go beyond monetary tightening. Strengthening agricultural productivity, improving security in food-producing areas, investing in infrastructure, and reducing logistics costs will be essential to easing inflationary pressures and improving the welfare of ordinary Nigerians.
“Ultimately, while macroeconomic reforms may yield benefits over time, many citizens are still grappling with immediate and significant economic hardship,” Oyedokun said.
CPPE links inflation surge to global energy shocks
The Centre for the Promotion of Private Enterprise, CPPE, attributed Nigeria’s sustained inflationary pressure to the continuing effects of geopolitical tensions in the Middle East on global energy markets and supply chains.
CPPE Chief Executive Officer, Muda Yusuf, stated on Monday that Nigeria’s inflation challenge remains largely driven by cost push factors.
As part of its recommendations, CPPE stated:
“Government intervention should focus on improving food security, strengthening logistics infrastructure, investing in mass transit and rail transportation, and enhancing energy supply.”
