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Last updated: September 28, 2026
Summary: Inflation Is Falling, but Prices Are Not Falling With It
Nigeria’s headline inflation rate has dropped sharply in a year, from 23.14% in August 2025 to 15.39% in August 2026. That is real relief, but it can be misread. A lower inflation rate means prices are rising more slowly, not that the shopping basket is cheaper. For most households the cost of living in 2026 is still higher than it was in 2025, and the picture varies a lot by category:
- Food: Some staples are much cheaper than a year ago, including garri and beans, while tomatoes, ginger and other items have gone up. Food inflation rose through mid-2026 before easing slightly.
- Rent: Rents in prime Lagos areas have climbed steeply, with Lekki Phase 1 reaching about ₦10 million a year for a two-bedroom flat.
- Transport: Petrol has jumped by roughly two-thirds since January, pushing fares up.
- Data: Prices have held steady since the 50% tariff increase of early 2025, so they are far higher than before that hike but roughly flat over the past year.
This first part covers the overall picture, food and rent. The second part covers transport, data, the other big household bills, who is hit hardest and what to expect for the rest of the year.
The Big Picture: What the Inflation Numbers Say
| Indicator | Latest reading | A year earlier |
|---|---|---|
| Headline inflation, August | 15.39% | 23.14% (August 2025) |
| Food inflation, August | 19.57% | 25.30% (August 2025) |
| Headline inflation, month-on-month, August | 0.71% | Not compared |
| Petrol, Lagos (NNPC or major stations) | about ₦1,380 to ₦1,430 per litre | ₦925 per litre (April 2025, NNPC Lagos) |
A Twist Inside the Food Numbers
Food inflation did not fall in a straight line during 2026. NBS data show it at 12.12% in February, then rising through the spring to 16.06% in April and 20.31% in July, before easing to 19.57% in August. In July, food prices rose 5.56% in a single month, and in August that slowed to 1.02%. Part of the rise reflects base effects, since prices in early 2025 had already been falling, but it means that households felt little relief on food through the middle of the year.
Food Prices in 2026 Compared With 2025
The NBS publishes a monthly Selected Food Price Watch, which tracks average prices of common items across the country. The comparisons below use the latest months available to us.
| Item | 2025 price | 2026 price | Change |
|---|---|---|---|
| White garri, 1kg loose (April) | ₦1,345.10 | ₦808.96 | Down 39.86% |
| Brown beans, 1kg (April) | ₦2,429.39 | ₦1,338.93 | Down 44.89% |
| Onion bulbs, 1kg (April) | ₦1,503.56 | ₦1,164.39 | Down 22.56% |
| Eggs, crate of 30 (March) | ₦7,670.56 | ₦6,127.62 | Down 20.12% |
| Tomatoes, 1kg (April) | ₦1,283.57 | ₦1,177.92 | Down 8.23% |
| Tomatoes, 1kg (May) | ₦1,392.71 | ₦1,560.56 | Up 12.05% |
| Fresh ginger, 1kg (March) | about ₦4,600 | ₦5,541.25 | Up 20.46% |
| Palm oil, 1 litre (May) | about ₦2,323 | ₦2,396.62 | Up 3.17% |
How to Read the Food Data
1. The winners are the staples that had spiked in 2025. Beans and garri were extremely expensive a year ago, and their sharp falls, of 40% to 45%, are among the biggest improvements in the basket. A household that eats mostly these items has seen real relief.
2. Vegetables and spices are volatile. Tomatoes were 8.23% cheaper year-on-year in April, then jumped 32.48% in a single month to ₦1,560.56 in May, ending 12.05% above the previous May. Ginger has risen year-on-year in every month reported.
3. Location matters enormously. In May, tomatoes averaged ₦1,974.81 per kilogram in Lagos and only ₦1,017 in Ekiti. Beans ranged from ₦760 in Taraba to ₦1,941.78 in Oyo. In August, the state-level food inflation rate ranged from about 39% in Adamawa to below zero in Borno.
4. A puzzle worth flagging. The selected staples show large falls, while the broad food inflation index still shows food prices about a fifth higher than a year earlier. The reason is that the food inflation index covers a much wider basket, including meat, fish, oils, vegetables and processed items, and it captured the sharp rises of June and July. Anyone quoting food data should say which measure they mean.
Rent in 2026 Compared With 2025
Nigeria has no official national rent index, so these figures come from property reports and listing platforms. They are useful guides but not audited statistics.
Prime Lagos: The Steepest Climbs
According to the Lagos Island Residential Market Report 2026 from Lagos Realty, average annual rents in Lekki Phase 1 now stand at:
| Apartment type | 2022 | 2026 |
|---|---|---|
| One bedroom | ₦2.5 million | ₦7.5 million |
| Two bedroom | ₦4 million | ₦10 million |
| Three bedroom | ₦5 million | ₦15.5 million |
Lekki Phase 1 recorded the fastest five-year rent growth on Lagos Island at an annual compound rate of 35.9%, ahead of Victoria Island at 33.5%, Ikate at 29.6% and Ikoyi at 22.6%. Market commentary suggests island rents rose roughly 14% to 18% over the past year, though that figure comes from listing-site analysis and not an official source.
Rents Elsewhere in Lagos
| Area | Average annual rent (Expert Listing, March 2026) |
|---|---|
| Lekki (broader axis) | about ₦8.32 million |
| Ikeja | about ₦5.18 million |
| Yaba | about ₦3.2 million (roughly ₦266,667 a month) |
| Egbe | about ₦650,000 |
Mainland rents have generally risen more slowly, with market commentary pointing to increases in the range of 5% to 8%, while estate service charges have reportedly risen by 20% to 30% because of diesel and security costs. Again, these are indicative figures from private sources.
Why Rents Keep Rising
Building costs are a major factor. Cement retails for ₦12,500 to ₦15,000 per 50kg bag in several markets, compared with ₦7,700 to ₦9,000 in the second quarter of 2025, according to BusinessDay. A report by Fortren & Company found that construction costs rose by 20% between December 2025 and May 2026 because of higher material, energy and freight costs. Developers also cite naira weakness earlier in the cycle, and demand for good locations continues to outrun supply. Tenants in central areas therefore face pressure even as headline inflation eases.
A Practical Point on Rent
Most Nigerian landlords require a year’s rent, or more, in advance, so a rise in the annual figure creates a large upfront cash burden. For renters, the increase between one lease and the next is often felt as a single, large jump, not a gradual change.
Transport Costs in 2026 Compared With 2025
Transport is where households have felt the sharpest deterioration this year. Fuel prices have climbed steadily, and fares follow petrol with little delay.
Petrol Prices
| Date | Petrol price per litre | Note |
|---|---|---|
| April 2025 | ₦925 | NNPC stations, Lagos |
| Late January 2026 | ₦835 | NNPC stations, Lagos |
| March 2026 | ₦1,200 to ₦1,350 | After the Middle East crisis pushed crude higher |
| July 2026 | ₦1,300 | NNPC stations, Lagos, up from ₦1,118 |
| Mid-September 2026 | ₦1,380 to ₦1,430 | Lagos stations, after Dangote raised its gantry price to ₦1,350 on September 12 |
| Mid-September 2026 | ₦1,400 to ₦1,450 | Abuja |
Sources: news reports of NNPC, Dangote and marketer prices; GlobalPetrolPrices.com recorded a series high of ₦1,349.50 on September 14.
Comparing the January and September figures shows petrol up by roughly 65% to 70% in eight months, and up about 50% on April 2025 (our calculations). To put that in perspective, a 40-litre tank at ₦1,400 per litre costs about ₦56,000, which is 80% of the ₦70,000 national minimum wage.
What Is Driving Fuel Prices
Petrol is now priced according to global crude and the exchange rate. Brent traded around $105 in mid-September, well above the levels of early 2026, and analysts also point to supply disruptions at the Dangote refinery, which halted petrol loading for several days in July. Because pump prices follow crude closely, the same oil price rise that helps Nigeria’s reserves raises the cost of getting around.
Fares
| Route or area | Reported change |
|---|---|
| Lagos and Benin City routes (March) | More than 30% on several routes |
| Maiduguri to Kano (July) | ₦20,000 to ₦25,000, up 25% |
| Lagos and Ogun commuters (September) | Higher fares reported after the latest petrol rise |
Diesel has also become costlier, with reports of ₦1,650 per litre earlier in the year, which affects freight and, in turn, food prices in markets far from farms.
Data and Telecom Costs
Data is the one major household cost that has held steady over the past year, though it remains far above where it was in early 2025.
| Measure | Figure |
|---|---|
| Average cost of 1GB before the February 2025 tariff increase | ₦287.50 |
| Average cost of 1GB after the 50% increase | ₦431.25 |
| Data consumption, May 2025 | 1.04 million terabytes a month |
| Data consumption, December 2025 | 1.38 million terabytes a month |
| Airtel data use per customer, nine months to December 2025 | 10.7GB a month, up 26.2% |
Sources: NCC data and company results as reported in March 2026.
How to Read the Data Numbers
1. Prices are flat year-on-year. The Nigerian Communications Commission approved a 50% tariff increase in early 2025, the first major adjustment in more than a decade, and all four major networks have kept their post-hike pricing into 2026. A subscriber paying in September 2026 pays about the same as in mid-2025, but about half as much again as in January 2025.
2. Usage is climbing, so bills are too. Monthly consumption rose by about a third between May and December 2025, and MTN and Airtel together earned more than ₦3.6 trillion from data. When people consume more at a steady price, household spending goes up even if the rate card does not change.
3. Value varies widely by plan. Third-party price guides suggest that large annual or monthly bundles cost far less per gigabyte than small daily plans. For example, one guide lists an MTN 16.5GB plan at ₦6,500, about ₦394 per GB, and Glo’s 3.9GB for ₦1,000, about ₦256 per GB. These figures are indicative, so check current plans on your network’s app or USSD menu.
Electricity and Other Household Bills
Electricity has not changed dramatically in the past year, but it remains a heavy cost, especially for those who rely on generators.
- Band A tariff: ₦209.50 per kWh under the order in effect since December 7, 2025, before VAT. This is the only fully cost-reflective band.
- Bands B to E: ₦62.48, ₦50, ₦43 and ₦40 per kWh respectively, still subsidised, though these customers receive fewer hours of supply.
- A review is under way. The regulator was reviewing tariffs in May amid rising costs and debts in the power sector, but had not announced a fresh nationwide increase in the sources we reviewed.
- Wages have not moved. The minimum wage remains ₦70,000 a month.
For households outside the top band, the real electricity cost is often the diesel or petrol bill for a generator, which is why fuel price rises reach into nearly every part of the household budget.
The 2026 Cost-of-Living Scorecard
| Category | Direction compared with 2025 | Main driver |
|---|---|---|
| Staple foods (garri, beans, eggs) | Cheaper | Recovery from 2025 spikes |
| Vegetables, ginger, meat and fish | Mixed to higher | Seasonal swings, transport costs |
| Broad food basket | About 20% higher year-on-year in August | Sharp price rises in June and July |
| Rent in prime Lagos areas | Sharply higher | Construction costs, demand |
| Petrol | About 50% higher than April 2025 | Crude above $100, refinery pricing |
| Transport fares | Higher | Follows fuel |
| Data | Flat year-on-year, well above early 2025 | 50% tariff increase in 2025 |
| Electricity (Band A) | Broadly unchanged | Cost-reflective tariff |
This table is our summary of the data above, not an official index.
Who Is Hit Hardest
1. Low-income households. Food takes the largest share of a low-income budget, and food prices remained under pressure through the middle of the year. With the minimum wage at ₦70,000, a single fuel tank or a month’s rent in a mid-range Lagos area can equal or exceed monthly pay.
2. Renters in Lagos and other big cities. Annual advance rent means a large increase lands as a single, heavy bill at lease renewal.
3. Commuters and small transport-dependent businesses. Traders, delivery riders and drivers absorb fuel costs directly.
4. Rural households and high-inflation states. Rural monthly inflation accelerated in August, and states such as Adamawa, Zamfara and Bayelsa recorded food inflation above 36%.
5. Small businesses reliant on power. Barbers, welders, cold-room operators and cyber cafes depend on electricity or generators every day.
Practical Ways Households Are Coping
Market guides and consumer advice commonly point to a few steps that can make a difference:
- Buy staples in bulk and from wholesale markets, which are often significantly cheaper than retail.
- Pool purchases with neighbours for rice, garri and beans.
- Buy in season. Prices of some tubers and vegetables fall during harvest periods.
- Choose data plans by cost per gigabyte, not by sticker price, and use larger bundles if you can afford them.
- Cut energy waste with LED bulbs and efficient appliances, and check which electricity band your area is in.
- Negotiate rent early, ideally before a lease expires, and consider mainland areas with slower rent growth.
Outlook for the Rest of 2026
The direction of travel on the headline inflation rate is encouraging, with the rate at 15.39% in August, the CBN’s 350 basis point cut to 23% and a steadier naira. But the cost of living will not ease evenly. Points to watch through Q4:
- The September inflation release in mid-October, especially the month-on-month food figure.
- Fuel prices, which depend on crude oil and on Dangote’s gantry pricing.
- Harvest-season food prices, which typically ease some grain and tuber prices in the last quarter.
- Festive demand in December, which usually pushes up food and transport costs.
- The electricity tariff review, which could raise power bills.
- Rent renewals, where landlords may push through increases in prime areas.
- Wage negotiations, since any change to the ₦70,000 minimum wage would affect purchasing power.
Frequently Asked Questions
Is the cost of living in Nigeria higher in 2026 than in 2025?
For most households, yes. Inflation is lower at 15.39% in August compared with 23.14% a year earlier, but that only means prices are rising more slowly. Some staples are cheaper, while rent, fuel and fares are higher.
Why did petrol prices rise so much in 2026?
Petrol is priced in line with global crude and the exchange rate. Brent rose above $100 after a Middle East crisis earlier in the year, and Dangote refinery price changes and supply interruptions added to the increases.
Have data prices gone up in 2026?
Not significantly. Prices rose about 50% after the NCC approved a tariff increase in early 2025 and have stayed at those levels since. Monthly bills can still rise if usage rises.
Which food items are cheaper than last year?
NBS data show garri, brown beans, onions and eggs cheaper than a year earlier in the months reported, with beans and garri down by roughly 40% to 45% in April. Tomatoes and ginger are up.
Where is rent rising fastest?
Prime Lagos Island areas. Lekki Phase 1 recorded the fastest rent growth over five years, with average annual rent for a two-bedroom flat reaching about ₦10 million.
Conclusion
The cost of living in Nigeria in 2026 tells two stories. The macro numbers are improving: inflation is well below last year’s level, the currency has steadied and interest rates are falling. But ordinary households are dealing with prices, not percentages, and the biggest bills, rent, fuel and transport, have risen faster than many can absorb. Some relief on staples and stable data prices help at the margin, yet with a ₦70,000 minimum wage and fuel above ₦1,300 a litre, affordability remains the central challenge for the fourth quarter.
