Global Macroeconomic Review
United States: The US Labor markets have begun showing unmistakable signs of fatigue, with employers adding a disappointing 139,000 jobs in May, falling well short of market expectations. More troubling still, over 600,000 Americans dropped out of the workforce entirely, pushing participation rates down to 62.4% and raising questions about the underlying strength of employment conditions. The Federal Reserve remains caught between conflicting pressures, maintaining interest rates at their highest levels in over two decades while facing intense political criticism from President Trump, who has…
Domestic Macroeconomic Review
Declining Inflation, Sustained Growth; Rising Debt; Strong Trade Reforms
Nigeria’s inflation rate continued to ease in May 2025, dropping to 22.97% from 23.71% the previous month. This marks the second straight month of slowing price increases, showing a steady improvement in the country’s cost of living. Prices rose by 1.53% compared to April, a slower pace than the 1.86% increase seen between March and April. The improvement came partly from slightly lower food prices, which increased by 21.14% compared to last year, down from April’s 21.26%. However, food costs actually rose faster month to month, climbing 2.19% in May versus 2.06% in April, with steeper prices for basic foods like yams, cassava and maize flour…
Market Update
Foreign Exchange Market: In June 2025, the Naira recorded a strong performance, appreciating by 3.56% m/m to close at ₦1,529.71/USD at the Nigerian Foreign Exchange Market (NFEM). This gain was driven by consistent FX inflows from foreign portfolio investors, exporters, and remittances, alongside improved market liquidity. The local unit began the month with a 2.08% weekly gain, trading as low as ₦1,535/USD, supported by steady dollar supply and investor optimism. Subsequent weeks sustained the rally, with notable appreciation to ₦1,539.24/USD and a robust close of ₦1,529.71/USD—its best level since March…
