FUEL, FOOD PRICE REDUCTIONS EXPECTED TO DRIVE INFLATION TO 12.94% — CBN

The Central Bank of Nigeria (CBN) has projected that the country’s inflation will ease to 12.94 percent in 2026, supported by falling fuel and food prices.

In its 2026 macroeconomic outlook, released on Wednesday, the CBN also forecast that Nigeria’s economy will expand by 4.49 percent.

The apex bank attributed the expected growth to ongoing benefits from broad-based structural reforms and a gradually loosening monetary policy.

“Headline inflation is projected to moderate to an estimated average of 12.94 percent in 2026, driven by declining food and premium motor spirit (PMS) prices,” the CBN stated.

Last week, fuel prices in Nigeria dropped significantly due to competition in the oil downstream sector. Dangote Refinery notably reduced its gantry petrol prices, causing nationwide petrol prices to range between N739 and N910 per liter.

Additionally, data from November 2025 showed that food inflation in Nigeria had fallen to 11.08 percent.