RFA Breakfast Paper - August 14, 2026

Naira Softens as Inflation Holds Near 16%

The naira closed at ₦1,361.85 to the dollar on Friday, a 0.18% depreciation from

₦1,359.37 on Thursday, leaving it broadly range-bound between ₦1,359 and ₦1,364

through the week. The move is modest, but it lands against a still-elevated price

backdrop: headline inflation was 15.91% year-on-year in June, essentially flat on May's

15.93% and well above the CBN's medium-term target, while first-quarter real GDP

growth of 3.89% points to an economy expanding but not yet absorbing the cost of the

2023-24 reforms. For investors, the read-through is that disinflation has stalled rather

than reversed, which limits the scope for near-term policy easing and keeps naira

assets dependent on carry rather than currency appreciation. Sustained FX stability

remains the precondition for foreign participation returning to Nigerian equities and

duration.

U.S. Stocks Slip as Sentiment Sours

U.S. equities closed lower on Friday, with the S&P 500 down 0.17% to 7,785.76 and the

NASDAQ Composite off 0.28% to 26,729.16, as a weaker preliminary University of

Michigan consumer sentiment reading for August revived concerns that households

remain preoccupied with inflation. Both indices nonetheless held on to a third

consecutive weekly advance, and the S&P 500 finished within 0.4% of its record high.

Treasuries sold off, the 10-year yield rising 5.5bps to 4.696%, tightening financial

conditions at the margin and weighing most on long-duration technology names.

NGX Extends Losing Run into Third Session

The NGX All-Share Index fell 0.16% to 242,619.20 on Friday, a third straight decline that

extends the pullback from early-August highs. The retreat follows losses of 1.12% on

Wednesday and 0.39% on Thursday, when roughly ₦613 billion was erased from market

capitalisation. The pattern is one of sector rotation rather than broad liquidation:

consumer goods names have borne the selling, with Unilever Nigeria down 18.95% over

two sessions, while insurance counters and selected financials have attracted bargain

hunting on sharply higher turnover. For investors, this looks like consolidation after

July's rally rather than a change in trend, though breadth warrants monitoring.