JP Morgan says, Nigeria’s Inflation Still Among World’s Highest Despite Drop

Nigeria’s inflation may have fallen from 32% last year to 16%, but it remains one of the highest globally, according to Dapo Olagunju, Managing Director and Head of West Africa at JP Morgan. Speaking at the “Fitch on Nigeria 2025” forum in Lagos, Olagunju noted that despite economic progress, inflation and other structural challenges persist.

Olagunju defended Nigeria’s recent S&P credit rating upgrade, calling it a “transition of confidence” that helps investors quickly interpret the country’s economic outlook. He highlighted that credit ratings support price discovery, broaden market participation, and reinforce governance discipline.

He praised the resilience of Nigeria’s banking sector, citing strong capital adequacy, solid profitability, and improving risk management. He also pointed to the country’s oversubscribed Eurobond issuance, $13 billion in offers for a $2.3 billion target as evidence of renewed investor trust.

Other speakers echoed the importance of strong capital foundations. Access Bank’s Femi Jaiyeola said the CBN’s recapitalisation aims to strengthen capital quality, while UBA’s Chukwudubia Okoye noted that new capital will support Basel III buffers, regional expansion, technology investments, and SME lending.

Nigeria’s latest inflation data shows headline inflation easing to 16.05% in October 2025, down from 18.02% in September and significantly lower than 33.88% a year earlier, according to the National Bureau of Statistics.