RFA Breakfast Paper - September 15, 2026

Nigeria’s Inflation Eases to Five-Month Low as Core Pressures Moderate

Nigeria’s annual inflation rate eased slightly to 15.39% in August 2026 from 15.43% in July, marking the lowest reading since March and the third consecutive month of moderation, supported in part by the relative strength of the naira. Food inflation, the largest component of the CPI basket, fell to 19.57% from 20.31%, recording its first monthly decline in seven months, while price pressures also eased across transportation, restaurants and hotels, miscellaneous goods and services, and clothing and footwear. In contrast, housing and utilities inflation accelerated to 16.9% from 12.6%. Core inflation moderated for a third consecutive month to 13.29%, its lowest level since March 2021, from 14.97% in July, indicating a broad-based easing in underlying price pressures. On a monthly basis, CPI increased by just 0.71%, the slowest pace in seven months, following a 1.57% rise in July. The continued moderation in headline and core inflation strengthens the case for a gradual easing in monetary policy, provided the disinflation trend is sustained.

Rising Yields Put U.S. Equities Under Pressure

U.S. equities closed lower on Tuesday as rising Treasury yields increased pressure on stocks. The 10-year Treasury yield finished near 5%, while the 30-year yield climbed to 5.37%, extending the broader rise in long-term borrowing costs. Japan also saw longer-dated government bond yields move higher, with its 10-year yield reaching a fresh 30-year high. Most S&P 500 sectors ended lower, although Energy and Materials gained as commodity prices continued to strengthen. Global markets largely followed the weaker U.S. lead, with Asian equities mostly lower and European markets posting modest declines. Attention now shifts to the Federal Reserve, which will announce its interest-rate decision today amid expectations for a 25-basis-point hike. Higher yields and tighter policy expectations keep pressure on equity valuations, while Middle East uncertainty pushed WTI crude to around $106 per barrel, keeping inflation risks in focus.

NGX Extends Gains as Oil & Gas Leads Bargain Hunting

The Nigerian equity market extended its positive momentum, with the NGX All-Share Index rising 0.36% to close at 244,186.47, while market capitalization increased by ₦575.25 billion to ₦158.32 trillion. Continued bargain hunting and buying interest in medium- and large-cap stocks supported the advance, with the Oil & Gas sector providing the strongest lift. Trading activity also strengthened, as total volume and value traded increased by 17.75% and 76.84%, respectively. Investors exchanged approximately 505.12 million units worth ₦36.29 billion across 71,635 deals. Sector performance remained broadly positive, with three of the five major sectors closing higher. Oil & Gas led the market, gaining 3.79%, followed by Consumer Goods at 1.06% and Banking at 0.08%. Meanwhile, Industrial Goods declined 0.58% and Insurance fell 0.18%, limiting the broader market advance. The session therefore reflected continued investor demand for selected medium- and large-cap stocks, while the sharp increase in traded value pointed to stronger market participation.