Nigeria slips to bottom of global quality of life rankings amid rising inflation

Nigeria’s worsening inflation crisis has pushed the country to the bottom of global quality-of-life rankings, highlighting the growing economic hardship facing millions of households and businesses across the nation.

The latest figures released by the National Bureau of Statistics (NBS) show that inflation continued its upward trajectory in May 2026, marking the third consecutive monthly increase this year.

According to the Consumer Price Index (CPI) report, headline inflation rose to 15.93 percent in May from 15.69 percent recorded in April, while food inflation climbed significantly to 16.96 percent from 16.09 percent.

The report indicated that headline inflation increased by 0.24 percentage points, while food inflation rose by 0.87 percentage points during the period under review. On a month-on-month basis, headline inflation stood at 1.75 percent, while food inflation reached 2.98 percent, underscoring the persistent pressure on consumer prices.

The continuous rise in inflation has been largely driven by soaring costs of food, transportation, housing, and energy. These increases have significantly eroded purchasing power, making it increasingly difficult for Nigerians to meet basic living expenses.

Reflecting the impact of these economic challenges, Nigeria was ranked among the lowest-performing countries in the 2026 Quality of Life Index released by Numbeo.

The country occupied the bottom tier of the global ranking alongside Sri Lanka and Bangladesh. The index evaluates countries based on factors such as purchasing power, healthcare quality, safety, housing affordability, cost of living, pollution levels, traffic congestion, and climate conditions.

Economic experts have expressed concern that the rising inflation trend is deepening financial strain on citizens and businesses despite signs of macroeconomic stability in certain sectors.

Professor Godwin Oyedokun, an accounting and finance expert at Lead City University, said the latest inflation figures demonstrate the continued economic pressures confronting Nigerians, particularly amid rising food and fuel prices.

According to him, the persistent increase in inflation confirms that many citizens remain trapped in a cycle of high living costs despite ongoing economic reforms.

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“The third consecutive rise in Nigeria’s inflation rate underscores the persistence of economic pressures facing households and businesses. With fuel and food costs driving the increase, the data confirm that many Nigerians continue to struggle with a high cost of living despite signs of macroeconomic stabilisation in some areas,” Oyedokun stated.

He noted that the rising prices of essential commodities have made everyday life more difficult for families across the country.

“The figures reflect the harsh reality that essential items such as food, transportation, and energy remain increasingly unaffordable for many families. As inflation outpaces income growth, purchasing power declines, forcing households to cut back on consumption, savings, and investment in education and healthcare,” he explained.

Oyedokun further highlighted the broader consequences of rising fuel costs, noting that increased transportation and production expenses eventually translate into higher prices for goods and services.

“Higher fuel prices have a multiplier effect across the economy because they increase transportation and production costs, which are ultimately passed on to consumers. At the same time, rising food inflation places a disproportionate burden on low-income households, who spend a significant share of their earnings on basic necessities,” he added.

The financial expert stressed that tackling inflation would require more than monetary policy measures. He urged the government to focus on improving agricultural productivity, strengthening security in farming communities, investing in critical infrastructure, and reducing logistics bottlenecks that contribute to rising costs.

“The sustained upward trend in inflation highlights the need for policies that go beyond monetary tightening. Strengthening agricultural productivity, improving security in food-producing areas, investing in infrastructure, and reducing logistics costs will be essential to easing inflationary pressures and improving the welfare of ordinary Nigerians,” he said.

He maintained that while ongoing economic reforms may eventually yield positive outcomes, many Nigerians continue to face immediate financial difficulties that require urgent attention.

Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) has linked Nigeria’s inflation challenges to external factors, particularly geopolitical tensions in the Middle East that have disrupted global energy markets and supply chains.

In a statement, CPPE Chief Executive Officer, Muda Yusuf, described the country’s inflation problem as predominantly cost-push in nature, driven by rising production and distribution costs rather than excessive consumer demand.

To address the situation, the organisation called for targeted government interventions aimed at boosting food security, improving logistics infrastructure, expanding mass transit systems, strengthening rail transportation networks, and enhancing energy supply across the country.

Analysts warn that unless inflationary pressures are effectively addressed, the continued rise in living costs could further weaken consumer spending, reduce business confidence, and worsen the quality of life for millions of Nigerians already grappling with economic hardship.