The World Bank has warned that fuel prices in Nigeria have risen by more than 50 percent since the outbreak of the Iran conflict, intensifying inflationary pressures on households and businesses.
Speaking during the Nigeria Development Update presentation in Abuja, the Bank’s Lead Economist for Nigeria, Fiseha Haile, said the surge in energy prices is feeding into broader inflation across the economy.
According to the Bank, higher fuel costs have significantly increased transportation, food and production expenses nationwide, while diesel prices have nearly doubled.
Although Nigeria’s inflation rate dropped to about 15.06 percent in February from 33 percent in December 2024, analysts warn that the Middle East crisis could reverse the gains.
The Bank urged Nigerian authorities to consider easing restrictions on fuel imports to stabilise supply and moderate prices.
Despite predicting economic growth of about 4.2 percent in 2026, the institution warned that persistent inflation remains a major threat to household welfare.
For many Nigerians already battling high living costs, the latest surge in fuel prices highlights the fragile nature of the country’s energy market and the government’s limited ability to shield citizens from global shocks.
