77.2% of Nigerian Households Report High Inflation as Cost Pressures Persist

Nigerian households continue to face pressure from rising prices

The proportion of Nigerian households that perceived inflation as high increased to 77.2% in September 2026, up from 67.2% in August, according to the Central Bank of Nigeria’s (CBN) latest Inflation Expectations Survey.

The findings show that households continued to experience significant price pressures despite a marginal decline in Nigeria’s official headline inflation rate in August. The CBN’s Inflation Perception Index also rose to 43.1 points in September from 39.6 points in August, indicating a worsening perception of price increases among respondents.

/ You Might Also Like /

The survey highlights the pressure on household budgets as Nigerians manage the cost of essential goods and services, with potential consequences for disposable income, rent payments and demand for housing.

Household Inflation Perception Rises Across Income Groups

The CBN survey showed that households experienced stronger inflation concerns than businesses during the review period.

Across all respondents, the proportion who perceived inflation as high increased to 69.5% in September from 64.3% in August. Among businesses, the corresponding share rose from 61.8% to 62.6%, while the household figure recorded a sharper increase from 67.2% to 77.2%.

The figures indicate that household perceptions of inflation deteriorated more sharply than those of businesses, although the survey does not establish that every household experienced the same degree of financial pressure.

The difference also highlights the importance of distinguishing between official inflation data, which measures changes in prices over time, and inflation perception, which captures how respondents assess price movements in their daily lives.

Lower-Income and Rural Households Report Greater Pressure

The survey identified differences in inflation perception based on household location and income.

Rural households recorded a high-inflation perception rate of 79.1%, compared with 76.2% among urban households.

Income also influenced respondents’ assessments. Households earning below ₦70,000 recorded the highest perception of high inflation at 80%. By contrast, households earning between ₦350,000 and ₦400,000 recorded the lowest rate at 59.1%.

Nairametrics

The results show that inflation concerns were particularly pronounced among lower-income households. This is significant because households with limited earnings generally have less room to absorb increases in essential expenditure without adjusting other spending commitments.

For the housing market, pressure on household budgets can affect the capacity of tenants to meet rent obligations and the ability of prospective buyers to save towards deposits or mortgage repayments. However, the CBN figures measure inflation perceptions rather than actual rent arrears, mortgage defaults or changes in home-purchase activity.

Energy Costs, Interest Rates and Exchange Rates Remain Key Concerns

Respondents identified energy costs, interest rates, exchange rates and insecurity among the major factors influencing their perception of inflation in September.

These factors affect different parts of the economy, from household transportation and electricity expenditure to business operating costs and the prices of imported goods and production inputs.

For Nigeria’s property sector, the same cost pressures matter because residential and commercial development depends on materials, labour, transport, energy and financing.

Higher operating and construction costs can put pressure on developers’ project budgets, while tighter household finances can limit the prices prospective buyers can afford and the rents tenants can sustain.

The survey does not quantify the contribution of each factor to housing costs. Its findings instead provide broader context for understanding the economic pressures facing households and businesses.

Inflation Continues to Increase Household Expenditure

The CBN survey also found that 58.8% of household respondents reported increased expenditure because of inflation. Among businesses, the proportion was higher at 62.3%

The figures indicate that inflation-related costs continued to affect both consumers and businesses, even as expectations for the coming months became more moderate.

For households, increased spending on essential goods and services can reduce the income available for other commitments, including rent, utilities, savings and housing finance payments. For businesses, higher expenditure can place pressure on operating budgets and investment decisions.

The effects will vary according to income, household size, location and existing financial commitments. The survey does not provide a direct estimate of how much additional expenditure households incurred or how much of that increase related specifically to housing.

Official Inflation Eases Marginally as Perceptions Worsen

Nigeria’s headline inflation rate eased slightly to 15.39% in August 2026 from 15.43% in July, according to the National Bureau of Statistics.

The marginal decline in the official rate contrasts with the increase in households’ perception of high inflation in September.

The two measures capture different aspects of price movements. Headline inflation measures the rate at which the general price level changes, while the CBN survey records respondents’ perceptions of inflation. A decline in the inflation rate therefore does not necessarily mean that prices have fallen; it can mean that prices are increasing more slowly.

This distinction is important for housing because households must still meet current rent, utility and other living costs even when the pace of overall price increases moderates.

Households Expect Some Relief Over the Coming Months

Despite the deterioration in current inflation perceptions, respondents anticipated a gradual moderation in inflation over the next three and six months.

The CBN reported that 29.5% of household respondents expected inflation to moderate over the next six months. Among businesses, 26.9% anticipated moderation over the same period.

The Inflation Expectations Index stood at 25.1 points in September, below the Inflation Perception Index of 43.1 points. The difference indicates that respondents’ expectations for future inflation were less severe than their assessment of current price pressures

These responses reflect expectations rather than a guarantee that inflation will decline. Actual price movements will depend on economic conditions and the factors affecting production, distribution and household expenditure.

Implications for Housing Affordability

The latest figures provide a useful indication of the financial pressures facing households in Nigeria’s housing market.

Housing affordability depends not only on the price of a property or the rent charged by a landlord, but also on household income and the cost of other essential expenses. When food, transport, electricity and other necessities absorb a larger share of income, households have less flexibility to meet housing costs or save towards homeownership.

For developers and property investors, sustained pressure on purchasing power is relevant to decisions about target markets, pricing, payment plans and the delivery of housing at different income levels. However, the survey alone does not establish that housing demand has fallen or that rents have increased.

The figures instead highlight the wider affordability environment in which housing providers, lenders and policymakers operate, particularly when designing products for lower-income households.

Outlook

The CBN’s September survey shows that inflation remained a major concern for Nigerian households, with the proportion perceiving high inflation rising by 10 percentage points from August. Lower-income and rural households reported particularly high levels of concern.

Although respondents expected some moderation over the next six months, the findings underline the continued pressure on household budgets. For the housing sector, the central issue is whether household incomes and purchasing power can keep pace with rent, utility and homeownership costs as broader economic conditions evolve.

READ MORE