S&P Global has increased its inflation forecast for Nigeria in 2026 to 16.9%, reflecting continued economic headwinds in the West African nation.
The rating agency’s adjustment underscores the difficulty of stabilizing prices amid structural challenges and recent monetary expansions.
The revision comes as Nigeria’s broad money supply expanded to N129.21 trillion in May 2026, according to recent data.
This surge in liquidity raises concerns about the central bank’s ability to anchor inflation expectations without triggering further currency depreciation or economic slowdown.
Political uncertainty also looms over the economic outlook.
The 2026 Nigerian election is shaping up to be a highly contested affair, with prominent figures vying for power in a landscape reminiscent of past political rivalries.