Business
Nigeria’s inflation rise above 15%
Nigeria’s inflation rate rose to 15.93 per cent in May 2026, extending its upward trend for the third consecutive month as persistent increases in food and energy prices continued to put pressure on household budgets and business operating costs.
The latest inflation reading has reinforced concerns among economists and market analysts that price pressures remain firmly entrenched despite ongoing monetary tightening and various government interventions aimed at stabilising the economy.
According to analysts, inflation is expected to remain elevated in June 2026, with forecasts placing the headline rate between 15.9 and 16.0 per cent. Most projections also suggest that inflation could average around 16 per cent by the end of 2026, barring any significant improvements in food production, exchange rate stability, and global energy prices.
Food inflation remains the largest contributor to the rising headline figure, with increases recorded across staple commodities including grains, rice, beans, yam, vegetables, cooking oil, meat and other household essentials.
Analysts attribute the sustained rise in food prices to several factors, including high transportation costs, insecurity affecting farming communities, climate-related disruptions, post-harvest losses and increased logistics expenses.
The cost of moving agricultural produce from rural farming areas to urban markets has remained elevated due to higher fuel prices and poor transport infrastructure, further increasing the prices paid by consumers.
Energy prices have also continued to fuel inflation, with higher electricity tariffs, diesel prices, cooking gas and transportation costs feeding into the prices of goods and services nationwide.
Manufacturers and small businesses, many of which rely on alternative power sources due to unreliable electricity supply, continue to pass increased operating costs on to consumers.
Economic analysts note that the combined impact of food and energy inflation has reduced household purchasing power, forcing many families to adjust spending patterns and prioritise essential goods.
Despite the sustained rise in inflation, financial market analysts widely expect the Central Bank of Nigeria (CBN) to maintain its current monetary policy stance during its next Monetary Policy Committee (MPC) meeting.
The apex bank is expected to keep the Monetary Policy Rate (MPR) unchanged, arguing that previous rate increases are still working through the economy and that maintaining policy stability could help preserve investor confidence while monitoring inflation developments.
Many economists believe an additional interest rate hike could further increase borrowing costs for businesses without necessarily addressing the structural drivers of inflation, particularly food supply constraints and energy-related costs.
Economic experts believe Nigeria’s inflation outlook will largely depend on several key factors, including agricultural output during the current farming season, exchange rate stability, improvements in energy supply, fiscal discipline and continued coordination between monetary and fiscal authorities.
A successful harvest, improved security in food-producing regions and reduced logistics costs could help moderate food prices during the second half of the year. However, any renewed pressure on fuel prices or disruptions in agricultural production could keep inflation above policymakers’ preferred range.
For businesses, persistent inflation continues to increase production costs, reduce profit margins and weaken consumer demand as households grapple with declining purchasing power.
Consumers, meanwhile, are expected to remain cautious with spending, focusing on essential items while postponing discretionary purchases amid rising living costs.
While inflation remains significantly lower than the elevated levels recorded in previous years, economists caution that sustained increases over the past three months underscore the need for continued policy coordination to address structural challenges affecting food production, energy supply and the broader economy.
As attention shifts to the release of the June inflation data, investors, businesses and policymakers will be watching closely for signs that price pressures are beginning to ease. A moderation in inflation could strengthen confidence in Nigeria’s economic recovery, while a further increase may reinforce expectations that inflation will remain close to 16 per cent through the end of 2026.
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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