S&P Global has raised its forecast for Nigeria's inflation rate in 2026 to 16.9 percent. The new projection marks an increase from the agency's previous estimate of 16.4 percent for the country.
According to the ratings agency, the upward revision is driven mainly by cost pressures on households. It pointed to higher fuel and food costs as factors likely to keep inflation elevated, even as the country continues to push through economic reforms.
The revised outlook comes against the backdrop of fresh inflation data. Nigeria's inflation rate rose to 15.93 percent in May, a figure that marked the third consecutive monthly increase and underscored the persistence of price pressures.
Despite the higher inflation forecast, S&P struck a more positive note on overall output. The agency expects Nigeria's economy to grow by about 4.2 percent next year, supported by improving macroeconomic conditions and the reforms that are still under way.
On the fiscal side, Taiwo Oyedele addressed the question of government revenue. He said Nigeria's revenue challenge lies in expanding the tax net rather than in increasing tax rates, framing a wider base as the route to stronger collections. Speaking in Abuja while receiving the leadership of the Chartered Institute of Taxation of Nigeria, he argued that the goal should be more taxpayers rather than higher taxes.
The outlook landed on a subdued day for the local equities market. The exchange closed lower, slipping 0.64 percent to 233,580.83 points, while market capitalisation eased below the 150 trillion naira mark to settle at about 149.888 trillion naira.