Economy
Inflation to Ease to 11.31% in February—FSDH
By Modupe Gbadeyanka
The research arm of Lagos-based financial institution, FSDH Merchant Bank, has said it expects inflation rate for the month of February 2019 to moderate to 11.31 percent from 11.37 percent recorded a month earlier.
In its Inflation Watch report, FSDH Research said the drop in inflation will defy electioneering spending, which was earlier predicted to contribute to a rise in the head inflation.
The National Bureau of Statistics (NBS) will release the inflation figure for the month of February on Friday, March 15, 2019, well ahead of the second Monetary Policy Committee (MPC) meeting of this year scheduled for March 25-26, 2019.
On February 23, 2019, Nigeria held the presidential and National Assembly elections, while on March 9, 2019, the governorship and state houses of assembly polls took place.
“If the inflation rate drops, can we expect a further drop in interest rates (yields) on fixed income securities? Or, can we expect members of the MPC of the Central Bank of Nigeria (CBN) to clap their hands for achieving stability in domestic prices and reduce policy rates?” the firm asked, saying it believes inflation rate in double digits, “as we predict it in 2019 and through 2022, may not justify a reduction in the monetary policy rates.”
“We believe there are many other issues that Nigerian economic managers need to address before the Nigerian economy can enjoy a low, as many people suggest, single digit interest rate,” the report said.
It further noted that, “When there is a general increase in the prices of goods and services, there is the tendency for suppliers (producers) to be happy as it should increase their profit.
“However, an increase in the general prices of goods is not good for consumers as it reduces their buying powers: the same amount of money cannot buy the same quantity of goods as it previously could.
“On the other hand, when there is a persistent decrease in the prices of goods and services, the profit of the suppliers (producers) will drop while the consumers’ ability to buy goods increases as a certain amount of money is enough to purchase more units of goods.
“Therefore, a balance in general prices of goods is needed to encourage both producers and consumers. This is why the CBN regularly modifies interest rate and yields to achieve a target range of inflation rate, currently put at 6 percent to 9 percent.”
FSDH Research the price monitor it conducted on certain food and non-food items in February showed that most prices increased at a slower rate in February than in January.
It said the slower pace of increase was an indication of an expected drop in the inflation rate in February.
“Our analysis shows the movements in the international food prices did not exert upward pressure on local prices in February.
“The report published by the Food and Agriculture Organization (FAO) of the United Nations for the month of February 2019 shows that food prices such as sugar, milk, butter, cheese, meat, oils, rice, wheat and maize increased on the international market.
“However, the value of the Naira strengthened against the Dollar during the month. The appreciation recorded in the Naira eliminated the impact of the increase in the international food prices on local prices.
“Although the inflation rate is trending downwards, FSDH Research stresses that certain economic realities may not guarantee a continued downward trend. The key limiting factors to a continued drop in the inflation rate are the need for adjustments to the current pricing regime of Petroleum Motor Spirit (PMS) and the electricity tariff.
“If these adjustments are carried out, government will save a certain amount of money that could and should be redirected to fund other critical sectors of the economy such as healthcare, education, security and infrastructure development.
“If this was the case, we would expect these adjustments to attract investments into those sectors. Although such adjustments may shift the inflation curve from its current level, the good news is that it may not go higher than 13 percent level.
“It is important to note that, if the Federal Government of Nigeria (FGN) implements these pricing adjustments, FSDH Research expects the average inflation rate of 2019 to be around the same average inflation rate of 2018. Meanwhile, the inflation rate would be substantially lower than it was in 2016 and 2017.
“Therefore, it may be better for Nigeria to remove ‘subsidies’ in both the energy and power sectors. We believe it would be a case of temporary pains and permanent gains.”
By Adedapo Adesanya
Easing tensions between the US and Iran in the Middle East is expected to offer more respite to the Nigerian economy in the coming months.
Analysts at Comercio Partners noted in a report that there is an increased likelihood of a gradual moderation in inflation from July into the third quarter of 2026.
The analysts opined that the near-term outlook for inflation “has become less tilted to the upside” following the peace deal reached by the warring parties in the Middle East conflict and the sharp decline in global oil prices.
The report read in part: “May inflation data showed that price pressures remain sticky, but the near-term outlook has become less tilted to the upside following the peace deal and the sharp decline in global oil prices.
“Headline inflation rose to 15.93 per cent year-on-year from 15.69 per cent in April, while food inflation climbed to 16.96 per cent and core inflation increased to 16.82 per cent, suggesting that both food and underlying non-food price pressures remain elevated.
“However, the easing in crude oil prices below $85/bbl reduces the risk of a renewed energy-led inflation shock. This is important for Nigeria, where fuel, diesel, transport, logistics, and food distribution costs are key channels through which global energy prices feed into domestic inflation.
“If lower oil prices are sustained and domestic fuel prices remain stable or decline, pressure on transport and production costs should gradually ease.”
It noted that in June, inflation may remain sticky because the pass-through of lower oil prices to consumer prices is unlikely to be immediate.
It added that food prices remain elevated, and core inflation picked up month-on-month in May, indicating that underlying price pressures have not fully faded. According to the National Bureau of Statistics (NBS), the inflation rate on a month-on-month basis was 1.75 per cent, which was 0.39 per cent lower than the rate recorded in April 2026 (2.13 per cent).
“However, the balance of risks has shifted. The likelihood of another sharp energy-driven acceleration has reduced, while the probability of gradual moderation from July into Q3 has improved.”
The analysts said in the report that while the latest CPI data, “still supports a cautious tone across rates and fixed income, as annual headline, food, and core inflation all moved higher in May,” the decline in oil prices gives the Central Bank of Nigeria (CBN) “more room to maintain a wait-and-see stance rather than respond aggressively to external energy-price risks, provided domestic prices begin to reflect the easing in global crude markets.”
Economy
All On Invests $1m in Eja-Ice Nigeria Limited to Strengthen Cold-Chain Infrastructure in Off-Grid Markets
All On, an impact investing company focused on expanding access to renewable energy solutions in Nigeria, has announced a $1 million investment in Eja-Ice Nigeria Limited, a provider of solar-powered refrigeration and cold chain infrastructure.
The investment will support Eja-Ice’s manufacturing and operational scale-up as the company enters its next phase of growth. It is expected to enable the expansion of its cold-chain solutions and improve access to reliable cooling services for households, small businesses, and institutions operating in off-grid and weak-grid environments.
Access to dependable cold storage remains a significant constraint across Nigeria, particularly in coastal and rural communities where limited energy infrastructure contributes to post-harvest losses and income instability for small-scale agro-producers.
By delivering energy-efficient refrigeration systems, Eja-Ice is helping to address these challenges while supporting the preservation of perishable goods and strengthening local value chains.
“All On’s investment in Eja-Ice reflects our approach of supporting solutions that improve energy access while enhancing livelihoods, reducing costs, and enabling businesses to grow. Strengthening cold-chain infrastructure is an important step towards building more resilient local economies and expanding opportunities in underserved markets,” the chief executive of All On, Ms Caroline Eboumbou, commented on the investment.
Eja-Ice’s integrated cold-chain model allows for greater control over product design, operational efficiency, and service delivery, ensuring that its solutions are tailored to the needs of underserved markets. The company’s systems are already supporting micro enterprises, cooperatives, and community-level infrastructure, particularly in areas where reliable electricity remains limited.
Also commenting, the founder and chief executive of Eja-Ice Nigeria Limited, Mr Yusuf Bilesanmi, said, “This capital raise is a huge step forward in our vision to power homes and businesses with products designed, assembled, and optimised right here on the continent. It’s not just about access to electricity—it’s about dignity, productivity, and opportunity for the over 600 million people across sub-Saharan Africa who are still off-grid.”
Through this investment, All On continues to advance its mission of closing Nigeria’s energy access gap by supporting the renewable energy ecosystem and businesses that deliver sustainable, market-driven solutions.
By Aduragbemi Omiyale
Shares of First Holdco Plc worth N45.0 billion issued through a private placement have been listed on the Nigerian Exchange (NGX) Limited.
A circular issued by the Head of Issuer Regulation Department of the NGX Regulation Limited, Mr Godstime Iwenekhai, disclosed that the equities were admitted for trading at the stock market on Monday.
According to the notice, the additional shares brought for listing to rank pari passu with existing shares of the organisation were 1,021,334,544 units.
These stocks were sold to one of the company’s major shareholders at a unit price of N44.06, amounting to N45.0 billion.
The total issued and fully paid-up shares of First Holdco, as a result of this listing, are now 45,475,027,677 ordinary shares of 50 Kobo each.
“Trading licence holders are hereby notified that an additional 1,021,334,544 ordinary shares of 50 Kobo each of First Holdco Plc were on Monday, June 22, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s private placement of 1,021,334,544 ordinary shares of 50 Kobo each at N44.06 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of First Holdco Plc have now increased to 45,475,027,677 ordinary shares of 50 Kobo each from 44,453,693,133 ordinary shares of 50 Kobo each,” the disclosure stated.
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