Last week was quite a busy one for the financial markets, both globally and right here at home. We saw some big central bank moves abroad, a highly anticipated growth forecast for Nigeria, and a nice little comeback on the local stock exchange.
You’re here so it means you want to know where the money moved and why it matters. Here is a breakdown of what went down last week.
Global Economy
US: High Energy Prices Drive Inflation Up
In the US, consumer prices rose 4.2% year-on-year in May, which is the fastest increase seen in over three years. The main reason for this jump was a sharp increase in what people are paying for energy. On the other hand, monthly price growth actually slowed down for the second month in a row.
At the same time, businesses are also seeing their costs go up, with producer prices rising 6.5% year-on-year. Over in the job market, more people filed for unemployment benefits last week, the highest level since February. Even though some people feel okay about their own bank accounts, the high cost of living is still keeping the overall mood pretty low.
Eurozone: First Contraction in Three Years
As many expected, the European Central Bank (ECB) raised three of its key interest rates last Thursday. This was their first rate hike since September 2023. The bank mentioned that the future is still uncertain, mostly because of how much energy prices are swinging. Because of these risks, they’ve lowered their growth expectations for the region to just 0.8% for 2026.
Sub-Saharan African Economies
African Eurobonds had a mixed week. Nigeria saw some yield compression on certain bonds, meaning investors were buying, but other countries like Kenya and Egypt saw yields rise as investors pulled back. Senegal’s bonds were hit the hardest, with yields jumping by 1.23 percentage points (123 basis points).
| Eurobond | WoW Yield Change (%) |
| Nigeria 8.375% 24/03/2029 | -0.09 |
| Nigeria 7.875% 16/02/2032 | 0.03 |
| Nigeria 9.248% 21/01/2049 | -0.04 |
| Kenya 8% 22/05/2032 | 0.45 |
| Kenya 8.25% 28/02/2048 | 0.30 |
| Angola 8% 26/11/2029 | 0.26 |
| Angola 8.75% 14/04/2032 | 0.34 |
| Angola 9.125% 26/11/2049 | -0.19 |
| Egypt 7.50% 31/1/2027 | 0.13 |
| Egypt 7.053% 15/01/2032 | 0.12 |
| Egypt 8.750% 30/09/2051 | 0.25 |
| Senegal 6.25% 23/05/2033 | 1.23 |
South Africa: Business Activity Falls Back Into Contraction
South Africa’s economy gave everyone a surprise by growing 1.9% year-on-year in the first quarter of 2026. That’s much better than the 0.8% growth they saw in the previous quarter. It shows the economy is recovering even with the country’s ongoing structural issues.
Domestic Economy
Major Updates During the Week
1. IMF Growth Forecast
The IMF projects Nigeria’s economy to grow by 4.1% in 2026. They noted that reforms have helped stability, but warned that insecurity and inflation are still major risks.
2. Trade Surplus
Nigeria recorded a trade surplus of ₦7.55 trillion in Q1 2026. This happened because exports remained strong while imports dropped by 18.2%.
| Monetary Policy Rate (February 2026) | Latest (%) | Prior (%) | CHG (%) |
| MPR | 26.5 | 26.5 | 0.00% |
| Cash Reserve Ratio (CRR) | 45.0 | 45.0 | 0.00% |
| Liquidity Ratio | 30.0 | 30.0 | 0.00% |
| Inflation (Normalized rates) | Apr.(%) | Mar.(%) | Feb.(%) |
| Headline | 15.69 | 15.38 | 15.06 |
| Food | 16.06 | 16.21 | 12.12 |
| Core | 15.86 | 14.31 | 15.88 |
| GDP (%) – YoY | Q1:2026 | Q4:2025 | Q3:2025 |
| Real GDP | 3.89 | 4.07 | 3.98 |
| Oil | 2.57 | 6.79 | 5.84 |
| Agriculture | 3.15 | 4.00 | 3.79 |
| Manufacturing | 3.29 | 1.13 | 1.25 |
| Information and Communication | 10.98 | 7.55 | 5.78 |
Equity Market: Bulls Reclaim the NGX
Even though the trading week was short due to the Democracy Day holiday, investors came back to the market in a big way. Stocks in the insurance, banking, and oil & gas sectors saw a lot of activity, which helped the market bounce back from previous losses. The All-Share Index rose 0.88%, and total market capitalization climbed to ₦156.97 trillion.
| Top Gainers | Top Losers | ||||
| Price | WoW change | Price | WoW change | ||
| ABCTRANS | 7.80 | 25.60% | FIDSON | 101.20 | -25.86% |
| CONHALLPLC | 8.25 | 23.13% | NEIMETH | 8.55 | -19.34% |
| ABBEYBDS | 11.40 | 21.93% | UHOMREIT | 70.00 | -17.36% |
| INFINITY | 11.25 | 20.32% | SUNUASSUR | 3.97 | -11.38% |
| AUSTINLAZ | 4.33 | 15.16% | UNILEVER | 140.00 | -10.26% |
While companies like ABCTRANS (+25.60%) and CONHALLPLC (+23.13%) topped the gainers chart, strong performances from market heavyweights like TIP, NEM, and FirstHoldCo also helped anchor the weekly advance.
Fixed Income Market: Liquidity Surge Keeps Rates Stable
In the fixed-income market, yields rose across all areas as investors pushed for better returns. Average Treasury Bill yields went up to 17.85%, while OMO Bill yields rose to 20.78%.
The bond market mirrored this retreat. Yields on short-term and mid-term bonds advanced to 16.80% and 16.79% respectively. Long-term bonds faced the most intense selling pressure, with yields climbing by a sharp 56 basis points to settle at 15.70% as investors adjusted their expectations. Yields will likely stay high, especially if cash in the banking system gets tighter.
Where This Leaves You
The market is full of opportunities right now, but you have to be more deliberate about where you put your money. Global pressures and local liquidity shifts are changing how investors behave.
For you as an investor, it’s all about balance. Knowing which signals to watch can help you position your portfolio better so you can reach your financial goals.
