Prices of yam, cassava, groundnuts push inflation to 15.38%
The National Bureau of Statistics (NBS) has stated that the prices of yam, ginger (fresh), cassava tuber, groundnuts (shelled), energy and transportation pushed headline inflation to 15.38 percent in March. The NBS, in its monthly report, also attributed the rise to increased prices of Irish potatoes, dried unground ogbono (apon), fresh tomatoes, and loose cassava […]
The National Bureau of Statistics (NBS) has stated that the prices of yam, ginger (fresh), cassava tuber, groundnuts (shelled), energy and transportation pushed headline inflation to 15.38 percent in March.
The NBS, in its monthly report, also attributed the rise to increased prices of Irish potatoes, dried unground ogbono (apon), fresh tomatoes, and loose cassava flour, which contributed to the uptick from 15.06 percent in February to the March figure.
The report added that March recorded a 4.18 percent increase, which is a 2.17 percent higher than the rate recorded in February 2026 (2.01 percent).
“This means that in March 2026, the rate of increase in the average price level was higher than the rate of increase in the average price level in February 2026.
Daily Trust reports that the US war on Iran in February had pushed the price of crude oil to above $100 per barrel.
This inadvertently led to the increase in price of petroleum products, transportation and food items.
The NBS report went on to state that at the divisional level, the three major contributors to the headline inflation were food and non-alcoholic beverages, 5.55 percent; restaurants & accommodation services, 3.26 percent and transport, 1.80 percent.
While the least contributors were recreation, sport, and culture: 0.00 percent; alcoholic beverages, tobacco, and narcotics, 0.02 percent and insurance and financial services, 0.02%.
Also, it said food inflation was 14.31 percent on a year-on-year basis, a drop from the 25.22 percent in the same month of the preceding year (March 2025).
But on a month-on-month basis, the food inflation rate in March 2026 was 4.17 percent, down 0.52 percentage points from February 2026 (4.69 percent).
It added that the average annual rate of food inflation for the twelve months ending March 2026 over the previous twelve-month average was 18.21 percent, which was 17.81 percent points lower compared with the average annual rate of change recorded in March 2025 (36.02 percent).
For “All items less farm produce and energy,” also known as core inflation—which excludes the prices of volatile agricultural produce and energy—NBS said it stood at 16.21 percent in March 2026 on a year-on-year basis, representing a decline of 10.91 percentage points compared to the 27.12 percent recorded in March 2025.
On a month-on-month basis, the core inflation rate rose to 4.03 percent in March 2026, an increase of 3.14 percentage points from 0.89 percent recorded in February 2026. The average twelve-month annual inflation rate stood at 21.09 percent for the period ending March 2026, which is 6.25 percentage points lower than the 27.34 percent recorded in March 2025.
Across states, the bureau noted that the all-items inflation rate on a year-on-year basis was highest in Bayelsa State (27.37 percent), Sokoto State (26.03 percent), and Bauchi State (23.67 percent). In contrast, Osun State (5.25 percent), Kano State (9.85 percent), and Kaduna State (10.38 percent) recorded the lowest increases in headline inflation on a year-on-year basis.
On a month-on-month basis, March 2026 recorded the highest increases in Zamfara State (10.77 percent), Bauchi State (9.37 percent), and Sokoto State (9.05 percent), while Lagos State (1.54 percent), Akwa Ibom State (1.80 percent), and Rivers State (1.89 percent) recorded the slowest increases in month-on-month inflation.
Food inflation
Food inflation on a year-on-year basis was highest in Bayelsa (33.35 percent), Sokoto (28.02 percent), and Adamawa (21.67 percent), while Kano (4.29 percent), Oyo (4.86 percent), and Katsina (7.48 percent) recorded the slowest rise in Food inflation on a Year-on-Year basis.
On a month-on-month basis, however, March 2026 food inflation was highest in Sokoto (11.78 percent), Niger (8.59 percent) and Gombe (8.10 percent), while Katsina (0.09 percent), Ogun (0.77 percent), and Adamawa (1.30 percent) recorded a decline in food inflation on a month-on-month basis.
Resurgence of inflationary pressures driven by energy costs – Expert
Speaking with Daily Trust, the CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the uptick in inflation is largely reflective of renewed energy price pressures, which continue to permeate production, transportation and distribution costs across the economy.
He said energy remains a critical cost driver in Nigeria, given the persistent reliance on gas, diesel and petrol for power generation, logistics and industrial operations.
“This cost-push dynamic explains the sharp increase in month-on-month inflation and signals that the underlying inflationary pressures are far from subdued.”
He also said the inflation data clearly shows that food and transportation-related costs remain the most significant contributors to inflation, accounting for a substantial proportion—estimated at about 70% of inflationary pressures when direct and indirect effects are considered.
“Food inflation stood at 14.31% year-on-year, while core inflation—which captures broader price pressures—rose to 16.21% . These figures are particularly troubling given their direct impact on household welfare.
“Transportation costs, which are heavily influenced by fuel prices and logistics inefficiencies, continue to exert strong upward pressure on prices across sectors.
“The transmission mechanism is simple: higher transport costs raise the cost of moving food, goods and services nationwide, thereby amplifying inflation.”
Implications of inflation on households
Yusuf said the dominance of food and transport in the inflation basket has profound welfare consequences.
“These are non-discretionary expenditures, meaning households cannot easily adjust consumption in response to rising prices.
“The implications include: erosion of real incomes and purchasing power, rising cost of living pressures on households, increased poverty and vulnerability, particularly in rural areas and heightened inequality across regions and income groups,” he said.
He said the situation is even more concerning given that rural inflation remains elevated, reflecting structural challenges in agricultural productivity and distribution systems.
He added that a major structural concern highlighted by the inflation dynamics is the dominance of the private sector in public transportation, especially road transport.
“This dominance creates significant vulnerabilities for citizens as transport operators are often highly unionised and they possess considerable pricing power.
“In an environment of rising fuel costs, this structure enables rapid and often disproportionate increases in transport fares, which are quickly transmitted across the economy.
“This underscores a critical policy gap: the absence of efficient, affordable and well-regulated public transportation systems leaves citizens exposed to price shocks and market inefficiencies,” he said.
He added that the March 2026 CPI report highlights a critical development in Nigeria’s inflation trajectory, where the earlier gains in disinflation are now being threatened by a resurgence of cost-driven pressures, particularly from energy, food and transportation.
He said, “This emerging trend suggests that while inflation had been moderating on a year-on-year basis, underlying structural vulnerabilities remain largely unresolved, with recent month-on-month increases pointing to renewed price momentum.
“The situation calls for urgent and targeted policy responses, as failure to address these supply-side drivers could reverse the fragile stability achieved and deepen the cost-of-living challenges facing households and businesses.”
“While disinflation trends remain evident on a year-on-year basis, the resurgence of monthly inflation pressures signals that macroeconomic stability is still fragile.”
“The policy response must therefore shift from a narrow focus on monetary tools to a broader strategy that addresses the structural drivers of inflation, particularly in energy, food and transportation.”