Global Macroeconomic Review
The U.S. labor market showed clear signs of slowing in July, with employers adding just 73,000 jobs, well below expectations, while May and June payrolls were revised downward by a combined 258,000. The unemployment rate inched up to 4.2%, and wage growth remained modest, underscoring weaker momentum in hiring. The disappointing report—particularly the sharp downward revisions—has fueled market expectations of a Federal Reserve rate cut in September, with investors now pricing in a nearly 90% probability of easing. Political tensions intensified as President Trump dismissed the head of…
Domestic Macroeconomic Review
Inflation Eases but Price Pressures Persist as Growth Remains Service-Driven
Nigeria’s economy in mid-2025 continued to show signs of resilience, with headline inflation easing for the third consecutive month to 22.22% y/y in June, down from 22.97% in May and significantly lower than the 34.19% recorded in June 2024. The moderation reflects the lingering impact of the rebasing of the Consumer Price Index (CPI) earlier in the year, which updated the base year and basket of goods. However, on a monthly basis, inflation rose by 1.68%, up from 1.53% in May, signaling that short-term price pressures remain.
On the growth front, Nigeria’s economy expanded by 3.13% y/y in Q1 2025, stronger than the 2.27% recorded in Q1 2024 but slower than 3.76% in Q4 2024, underscoring resilience amid tight monetary conditions and external headwinds…
Market Update
The Naira traded largely stable in July, with performance anchored by improved FX inflows and steady CBN interventions. The month began with calm trading in the ₦1,525–₦1,535/USD range, supported by consistent dollar supply from foreign portfolio investors and exporters.
The CBN conducted a sizable ₦1.2 trillion OMO auction, which temporarily tightened liquidity but had only a marginal impact on FX stability…
