Connect with us

Economy

Nigeria Food Inflation Rises Amid Skyrocketing Fuel Prices

Published

on

Food Inflation

Nigeria food inflation rises to 12.12% in February 2026 as fuel and energy costs surge, worsening household cost of living

adron lemon friday

Nigerians are grappling with rising living costs as food inflation climbed to 12.12 percent in February 2026, up from 8.89 percent in January, according to data released by the National Bureau of Statistics (NBS).

Also read: Inflation: Real reason Indomie reduced Prices of Popular Staple Food item Revealed

The rise comes amid soaring petrol and energy prices, with fuel retail rates in Abuja reaching N1,330 per litre in some stations following multiple hikes by Dangote Refinery, which last week raised its gantry petrol price to N1,175 per litre.

This prompted a N100 per litre increase at MRS filling stations and N50 at Optima, while other stations including NNPC, Raniol, AA Rano, Empire Energy, and NIPCO charge between N1,261 and N1,330 per litre.

NBS attributed the food inflation spike to price increases in staples including beans, carrots, okazi leaf, cassava tuber, crayfish, millet flour, yam flour, snails, ogbono, and cowpeas.

While overall headline inflation fell slightly by 0.04 percentage points to 15.06 percent, experts warn that this offers little relief for households, as the cost of essential goods continues to rise.

Economic analyst Ayo Teriba described February’s food price surge as influenced by seasonal factors.

“After the holidays in January, economic activity picks up, and prices typically rise in February,” he said, adding that short-term volatility could either signal a new inflationary trend or normal seasonal fluctuations.

Professor of accounting and finance Godwin Oyedokun said the modest decline in headline inflation is largely statistical and provides minimal comfort.

“Food inflation is particularly concerning because it constitutes the largest share of household expenditure,” he explained, noting that rising prices directly erode purchasing power and deepen poverty.

Oyedokun highlighted structural challenges in agriculture, energy, and logistics as key drivers.

“High petrol and electricity costs increase production and transport expenses. Insecurity disrupts farming, while post-harvest losses and logistical issues constrain supply,” he said.

He described the situation as cost-push inflation, where rising production costs are passed on to consumers.

Oyedokun called for stronger policy actions, including improving agricultural security, investing in storage and transport infrastructure, and providing targeted energy and logistics support.

“The government must focus not only on inflation figures but also on household welfare, purchasing power, and food accessibility. Sustainable inflation control requires fiscal, monetary, and structural reforms,” he said.

Also read: Nigeria Inflation Eases to 15.06% in February 2026

With fuel and energy costs continuing to rise amid global geopolitical tensions, economists warn that ordinary Nigerians may face persistent hardship unless targeted interventions are implemented.

71 / 100 SEO Score

Economy

FG Urges Investment in Youth, SMEs and Local Industries to Grow Economy

Published

on

Investment

Nigeria investment in youth and local industries is vital to job creation, says FG, urging public-private partnerships and regional industrialisation

The Federal Government has called for increased investment in youth development, small and medium-sized enterprises, technology and local industries to create jobs and strengthen Nigeria’s economic competitiveness.

Also read: Osun amotekun dismisses officer over gross misconduct

adron lemon friday

The Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, made the call during a panel discussion titled “From Trade to Value Chains: Building Regional Industries to Compete Globally” at the 32nd Nigerian Economic Summit, held under the sub-theme, “Invest Nigeria”.

In a statement issued on Tuesday and signed by his Special Assistant on Digital Media and Public Diplomacy, Raphael Oni, Enikanolaiye said Nigeria needed stronger partnerships between the public and private sectors to mobilise the capital required for sustainable economic growth.

He argued that the country must move beyond trading raw materials towards building industries that process local resources into finished products for domestic consumption and export.

According to the minister, investment from both domestic businesses and foreign sources would be necessary to expand industrial capacity, create employment opportunities and improve living standards.

“In advancing our country, we don’t talk enough to one another in terms of constructive conversation and dialogue. We believe that partnership which allows government to engage deeper and stronger with the private sector is critical. Government alone cannot alone raise the resources needed for shared prosperity,” he said.

Enikanolaiye added that domestic capital mobilisation was as important as attracting foreign investment.

He identified Nigeria’s youthful population as a major asset that could accelerate industrialisation if supported by investments in education, skills development, innovation and entrepreneurship.

“Our youth population is very critical – a vibrant population. We need to invest more in human capital, focusing on Small and Medium Scale Enterprises, technology, innovation and creativity. By so doing, we will be able to generate more employment for the youth and also raise more wealth and income,” he said.

On foreign policy, the minister said the administration had reordered its four-point 4D doctrine to place the welfare and prosperity of Nigerians at the centre of the country’s international engagements.

The framework focuses on Demography, Development, Democracy and Diaspora.

Enikanolaiye said democratic governance should produce tangible economic benefits for citizens rather than remain an end in itself.

“Democracy is good, but it is a means to an end, not an end in itself. Democracy must deliver on core priorities of economic development and economic prosperity to our people,” he said.

The minister also emphasised the importance of macroeconomic stability and reliable economic data in helping businesses assess investment opportunities and make long-term plans.

He said Nigeria had recorded improvements in macroeconomic stability and that inflation was coming down, although he did not provide supporting figures in the statement.

Enikanolaiye further called for reforms to make the Ministry of Foreign Affairs more responsive to Nigerians and strengthen its engagement with businesses.

He said cooperation between the government and private sector, alongside partnerships with neighbouring countries and other international markets, could help Nigeria expand its industrial base and improve its access to regional and global markets.

Also speaking at the summit, the President of the Economic Community of West African States Commission, General Birame Diop, called for greater emphasis on industrialisation to create jobs and strengthen regional trade.

His remarks were delivered by the ECOWAS Commissioner for Economic Affairs and Agriculture, Dehpue Yenpea Zuo.

Diop argued that trade agreements alone could not deliver widespread employment and economic growth without industries capable of processing raw materials and producing goods.

“Trade agreements do not create jobs; industries do,” he said.

He noted that intra-African trade accounted for about 15 per cent of the continent’s total trade, compared with more than 60 per cent in Europe and Asia.

He attributed the gap partly to the limited scale of regional industries.

According to Diop, the regional market, with more than 300 million consumers, provides an opportunity for West African manufacturers to expand production before competing across the continent under the African Continental Free Trade Area.

He outlined four priorities for advancing regional industrialisation: implementing existing trade agreements, including commitments on border management; developing value chains in sectors where West Africa has a competitive advantage; improving access to finance for businesses and producers; and measuring progress through jobs created and goods processed within the region.

Also read: Osun amotekun dismisses officer over gross misconduct

Diop said converting trade commitments into productive industries would be essential to expanding employment, increasing regional economic activity and strengthening West Africa’s competitiveness in global markets.

64 / 100 SEO Score
Continue Reading

Economy

Cash Outside Nigerian Banks Rises to N4.92tn

Published

on

Cash outside Nigerian banks rose to N4.92tn in September 2026 as Nigeria’s broad money supply increased to N146.6tn, CBN data show

Cash outside Nigerian banks rose to N4.92tn in September 2026, an increase of N48.73bn from the N4.87tn recorded in August, according to monetary data published by the Central Bank of Nigeria.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

adron lemon friday

The latest figures also showed an expansion in Nigeria’s broad money supply, which increased to N146.6tn in September from N139.09tn in the previous month.

The growth represents an increase of N7.51tn within one month, reflecting a broader expansion in the amount of money circulating across the economy.

The CBN data further showed that narrow money, which consists of currency in circulation and highly liquid deposits, rose to N44.05tn in September from N43.11tn in August.

Cash held outside banks refers to physical currency kept by individuals and businesses rather than within the banking system.

Broad money, by contrast, covers a wider range of monetary assets, including cash, demand deposits, savings and time deposits, as well as foreign currency deposits.

Nigeria’s broad money supply increased by 18.3 per cent between January and September, rising from N123.95tn to N146.6tn, the data indicated.

The latest increase followed the CBN’s decision in September to reduce its benchmark interest rate by 350 basis points, bringing it down from 26.5 per cent to 23 per cent.

The reduction was reported as the largest cut in the benchmark rate since December 2006.

Despite the rate cut, the Monetary Policy Committee retained the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent.

The committee also maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

The Cash Reserve Requirement determines the proportion of eligible deposits that banks must hold as reserves with the central bank.

It is one of the monetary policy tools used to influence banking-sector liquidity and credit conditions.

The rise in cash outside Nigerian banks formed part of the broader increase in money supply.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

However, the figures alone do not establish why households and businesses held more physical cash or how much of the increase was driven by spending, savings behaviour or other economic factors.

65 / 100 SEO Score
Continue Reading

Economy

Obasanjo: Policy is meaningless without entrepreneurs like Wale Tinubu

Published

on

Obasanjo

Olusegun Obasanjo says government policies require entrepreneurs like Wale Tinubu to translate economic plans into investment, industrial growth and jobs (more…)

73 / 100 SEO Score
Continue Reading

Trending News