Nigeria’s annual inflation rate rose for a third consecutive month in May.
Food costs continued to accelerate despite a moderation in monthly price increases.
Data from the National Bureau of Statistics showed headline inflation increased to 15.93% in May from 15.69% in April, extending a rebound that began in March after inflation briefly eased earlier in the year. The latest reading marks the third straight monthly increase and reflects the continued impact of higher food and transportation costs on household budgets.
Food prices remained the largest driver of inflation, with food and non-alcoholic beverages accounting for the biggest share of overall price growth. Rising transportation and energy costs also contributed to higher prices across the economy, increasing pressure on consumers already grappling with elevated living expenses.
While annual inflation moved higher, monthly price growth showed signs of easing. Headline inflation on a month-on-month basis slowed to 1.75% in May from 2.13% in April, suggesting that although prices continued to rise, the pace of increases moderated compared with the previous month.
The latest figures are likely to reinforce concerns at the Central Bank of Nigeria, which last month kept its benchmark interest rate unchanged at 26.50% while maintaining a cautious stance on inflation. Governor Olayemi Cardoso said policymakers remained focused on anchoring inflation expectations and preserving macroeconomic stability amid domestic and external risks.
Inflation had eased significantly earlier this year following the rebasing of Nigeria’s Consumer Price Index, but recent increases have raised questions about how quickly price pressures can be brought under control. Higher fuel costs linked to geopolitical tensions in the Middle East have filtered through the economy, particularly affecting transportation and food distribution costs.
Despite the recent uptick, inflation remains well below the levels recorded a year ago. The May reading of 15.93% compares with 26.06% in the same month of 2025, reflecting broader improvements in macroeconomic conditions following reforms aimed at stabilizing the economy and improving fiscal balances.
Analysts expect the central bank to remain cautious in the coming months as it weighs the risk of persistent food inflation against signs that underlying price pressures may be stabilising. Much will depend on energy prices, exchange-rate stability and the effectiveness of government measures to improve food supply and ease transportation costs.
For households, however, the immediate challenge remains unchanged. Food continues to account for the largest share of consumer spending, and the latest inflation data suggest that relief from rising living costs may take longer to materialize despite broader progress in stabilising the economy.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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