Nigeria’s monthly inflation rate jumped to the highest level in more than two decades, propelled by surging fuel prices stemming from the war in the Middle East.

Africa’s most populous nation had halved price increases from a peak of almost 30% in early 2025. The Iran war now threatens that progress, just as the country is looking to woo foreign investors. However, the energy crunch cuts both ways, boosting prices for what is also Africa’s biggest crude producer, Nigeria’s finance minister argued.

Though the shock has driven economists to slash forecasts for economic growth across the continent, some remain bullish: The head of Africa’s largest bank said at Semafor World Economy that its forecast for African growth remained unchanged.