Nigerian Market Eyes Accumulation Phase Amid Inflation Decline

The Nigerian market is expected to transition to an accumulation phase in Q4 as inflation dropped by 21.88% YoY in July 2025, mainly due to base effects and stable exchange rates. The Central Bank of Nigeria maintains a cautious stance with a 27.5% MPR, considering global tensions and slow disinflation risks.

Despite GDP growth of 3.13% YoY in Q1 2025, inflationary pressures persist, influenced by global trade tensions. The market awaits clearer downward inflation trends to potentially prompt a gradual easing of rates by the CBN.