Nigeria’s energy inflation rate declined to 4.37% in July 2026, marking its lowest level in four months. This represents a significant drop from the 9.83% recorded in June. Despite this moderation, energy costs—spanning fuel and electricity—remain the primary driver of inflationary pressure for both businesses and households, according to recent Central Bank of Nigeria surveys. While the decline offers some relief, high living costs and elevated borrowing rates continue to weigh heavily on consumer spending and corporate expenditure.