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IMF reveals that rising prices threaten Nigeria’s poverty reduction gains

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The International Monetary Fund (IMF) has warned that rising prices of essential goods could deepen poverty and worsen food insecurity in Nigeria despite recent improvements in the country’s macroeconomic stability.

The warning was contained in the IMF’s July 2026 World Economic Outlook Update, which projected that Nigeria’s economy would grow by 4.1 per cent in 2026 and 4.3 per cent in 2027, while cautioning that higher prices for basic necessities could offset some of the gains from ongoing economic reforms.

According to the Fund’s report released on Wednesday, Nigeria has continued to benefit from improved macroeconomic stability and stronger terms of trade, but households remain vulnerable to rising living costs.

The report read, “Nigeria is supported by improved macroeconomic stability and favourable terms-of-trade effects, though higher prices for essentials are expected to further aggravate poverty and food insecurity.”

The IMF noted that growth across sub-Saharan Africa was expected to remain broadly stable at 4.3 per cent in 2026, although performance would vary widely among countries depending on policy choices, reform implementation and exposure to external shocks.

It said oil-importing and non-resource-intensive economies in the region were likely to suffer more from rising energy and food prices, while some larger economies had benefited from earlier stabilisation efforts despite facing weaker official development assistance and missing out on much of the artificial intelligence-driven global technology boom.

The Fund retained its forecast for Nigeria’s economic growth at 4.1 per cent in 2026, unchanged from its April outlook, before projecting a further increase to 4.3 per cent in 2027.

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Globally, the IMF projected economic growth of 3.0 per cent in 2026 and 3.4 per cent in 2027, compared with an average of 3.5 per cent in 2024 and 2025. It attributed the slowdown to the economic fallout from the war in the Middle East, although stronger technology investment driven by advances in artificial intelligence was expected to partly offset the impact.

The Fund also warned that inflationary pressures had intensified following higher energy prices. It said, “Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027,” adding that the recent projections suggested “the disinflation trend in place since the beginning of 2024 has stalled.”

According to the IMF, renewed geopolitical tensions remain the biggest downside risk to the global economy. It warned, “The possibility of renewed Middle East conflict looms large and could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions.”

The report projected that higher energy costs would continue to feed into food prices. The report estimated that crude oil prices would rise by 32 per cent in 2026 compared with 2025 levels, while natural gas prices would increase by 22 per cent. Fertiliser prices were forecast to rise by 26 per cent, with food prices expected to increase by eight per cent because of higher energy, transport and fertiliser costs.

The IMF further cautioned that food insecurity could deteriorate if disruptions in energy and fertiliser markets persisted. It said, “Food insecurity could worsen materially if disruptions in fertilizer and energy markets intensify or linger, especially in low-income countries in South Asia and sub-Saharan Africa, whose food supply is provided largely by smallholder farmers unable to outbid competitors from wealthier nations.”

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The Fund advised governments to avoid broad-based fuel subsidies, tax cuts and price controls, arguing that such measures are expensive and often poorly targeted. Instead, it recommended temporary and targeted support for vulnerable households while maintaining policies aimed at restoring price stability.

The report stated, “Fiscal policy should avoid broad-based subsidies, tax cuts, and price controls, which are typically poorly targeted, fiscally costly, and politically difficult to unwind. If support is deemed necessary, it should be temporary, tightly targeted to vulnerable households, and embedded in a macroeconomic policy mix consistent with price stability.”

The IMF also urged countries to rebuild fiscal buffers, strengthen tax administration, improve spending efficiency and expand well-targeted social protection programmes to cushion the impact of rising living costs while preserving debt sustainability.

The PUNCH recently reported that Nigeria’s headline inflation rate rose to 15.93 per cent in May 2026, marking the third consecutive monthly increase in the annual inflation rate, as the organised private sector blamed geopolitical tensions in the Middle East, rising energy costs, insecurity and import bottlenecks for the worsening inflation.

The Consumer Price Index report released by the National Bureau of Statistics showed that inflation increased from 15.69 per cent in April to 15.93 per cent in May, extending a rebound that began in March after inflation fell slightly to 15.06 per cent in February.

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CBN reveals that Banks shut 476 branches in three years, read details

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Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, reducing their physical footprint by 8.8 per cent in three years, according to data from the Central Bank of Nigeria.

Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres across the country declined from 5,410 in 2022 to 4,934 in 2025.

The decline occurred despite an increase in the number of banks operating in the country over the period, pointing to a gradual contraction in physical banking locations.

An analysis by The PUNCH showed that the number of branches fell by 37 from 5,410 in 2022 to 5,373 in 2023. The pace of contraction accelerated in the following year, with 229 locations disappearing as the total dropped to 5,144 in 2024. Banks closed another net 210 locations in 2025, bringing the number down to 4,934.

Consequently, about 92 per cent of the 476 net reduction recorded over the three-year period occurred in 2024 and 2025. The CBN explained that the figures cover branches and cash centres operated by commercial, merchant and non-interest banks. The data were sourced from the apex bank and the Nigeria Deposit Insurance Corporation.

The reduction in physical banking locations came even as the number of banks increased from 32 in 2022 to 33 in 2023 and 35 in 2024, before declining slightly to 34 in 2025. The number of branches operated abroad remained unchanged at two throughout the period.

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A state-by-state analysis showed that Lagos recorded the largest decline in absolute terms. The country’s commercial hub had 1,602 branches and cash centres in 2022, but the figure fell to 1,532 in 2023 and 1,521 in 2024 before dropping further to 1,444 in 2025.

This meant banks closed a net 158 locations in Lagos within three years, representing a 9.9 per cent reduction. The state alone accounted for about one-third of the net decline recorded nationwide.

Despite the reduction, Lagos remained the dominant location for physical banking operations, accounting for about 29 per cent of the country’s 4,934 branches and cash centres in 2025.

The Federal Capital Territory also recorded a decline. The number of locations in Abuja stood at 400 in both 2022 and 2023 before falling to 391 in 2024 and 362 in 2025. This represented a net reduction of 38 branches and cash centres, or 9.5 per cent, over the three-year period.

Ekiti suffered one of the steepest contractions, with its branch network almost halving from 107 locations in 2022 to 57 in 2025, representing a decline of 50 locations or 46.7 per cent.

Enugu followed with a reduction of 44 locations from 162 to 118, while Oyo lost 41, declining from 237 to 196. Other states that recorded sizeable declines included Ondo, where the number fell from 127 to 105; Plateau, from 80 to 61; Osun, from 113 to 96; Cross River, from 83 to 67; and Rivers, from 290 to 275.

The decline was also evident in some of the major commercial centres in northern Nigeria. Kano increased its physical banking locations from 164 in 2022 to 175 in 2023 and 183 in 2024. However, the number fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had three years earlier.

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Kaduna followed a similar pattern, rising from 148 locations in 2022 to 156 in 2023 and 164 in 2024 before dropping to 146 in 2025.

Some states, however, recorded an expansion in their banking networks. Delta added 23 locations, with its total increasing from 173 in 2022 to 196 in 2025. Edo also rose from 155 to 165, while Jigawa increased from 31 to 37 and Kogi from 63 to 68.

The data further showed wide disparities in the distribution of physical banking infrastructure across the country. While Lagos alone had 1,444 locations in 2025, Yobe had 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi recorded 32.

For instance, Lagos alone accounted for more than 29 per cent of all branches and cash centres nationwide in 2025, highlighting the concentration of physical banking infrastructure in the country’s major economic centre.

The latest figures indicate that the contraction in the industry’s physical footprint has accelerated in recent years, underscoring how rapidly banking is migrating from brick-and-mortar to electronic platforms.

The PUNCH recently reported that the Central Bank of Nigeria called for greater adoption of alternative payment channels to expand access to financial services and stimulate economic activity.

Acting Director, Corporate Communications and Investor Relations Department of the CBN, Hakama Sidi-Ali, made the call at the 2026 CBN Fair in Lokoja, Kogi State.

Represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, she said alternative payment channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services.

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Crude hits $107, fresh petrol price hike looms

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Petrol prices in Nigeria may rise further as international crude oil prices surged to $107 per barrel on Thursday from about $100 the previous day.

The latest rally has increased pressure on domestic petrol prices, which have already climbed from about N830 per litre before the Middle East crisis to N1,310 or more in some locations.

Before the crisis began on February 28, crude oil traded below $69 per barrel. However, the subsequent disruption to global oil supplies has pushed international prices sharply higher, prompting the Dangote Petroleum Refinery and fuel importers to adjust their pricing.

With Brent crude now above $107 per barrel and the US-Iran conflict continuing to disrupt tanker movements through the Strait of Hormuz, marketers and analysts warned that another petrol price increase could be imminent.

According to Oilprice.com, Brent crude surged to $107 per barrel on Thursday as the prolonged military confrontation between the United States and Iran continued to disrupt oil supplies through the Strait of Hormuz, raising concerns over a sustained reduction in global crude availability.

The international benchmark gained more than five per cent in early trading, extending the rally that pushed it above the $100 mark earlier in the week.

West Texas Intermediate also climbed above $100 per barrel, reflecting growing global concerns that the conflict may continue to constrain crude supplies.

The latest increase was driven largely by a sharp decline in oil flows through the Strait of Hormuz. Oilprice.com reported that volumes, which had recovered to between six million and nine million barrels per day in previous weeks, had fallen sharply, with recent estimates putting daily outflows below two million barrels.

Shipping trackers also reported that no very large crude carriers had exited the strait since early September, a significant decline from the higher tanker traffic recorded during the brief period of relative calm.

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The escalation of attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters has further heightened uncertainty in the oil market.

Iran claimed to have struck several ships, while the United States confirmed the destruction of some Iranian oil tankers. Officials from both sides have given no indication of an imminent ceasefire, with their statements suggesting that the confrontation could continue for weeks or longer.

Analysts said the absence of a clear path towards de-escalation had forced traders to reassess global supply risks.

Physical crude benchmarks had already moved above $100 in recent sessions, while the futures market followed as inventories tightened and alternative export routes faced increased exposure to attacks.

For months, reports of recovering tanker traffic through the Strait of Hormuz had helped to limit upward pressure on crude prices. That outlook has now changed.

With oil flows sharply reduced and no clear diplomatic resolution in sight, global markets are increasingly pricing in the possibility of prolonged disruption to one of the world’s most important energy transit routes.

For Nigeria, sustained increases in international crude prices could continue to feed into the domestic petrol market, particularly as refiners and importers adjust their prices to reflect changes in global crude and related supply costs.

Source: punchng.com

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How to buy fuel via app, serve yourself at NNPC stations

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The Nigerian National Petroleum Company Limited has begun introducing self-service fuel pumps at selected NNPC Retail stations, allowing motorists to dispense petrol themselves using a mobile application.

The development is part of NNPC’s plan to deploy between 50 and 70 smart, self-service stations across the country within the next six months.

Unlike the conventional system where an attendant dispenses fuel, the self-service model allows customers to select the amount of fuel they want, make payment through an app and use a code to activate the pump.

NNPC Retail shared a guide on its X handle on Friday showing motorists how to use the system.

Here is a step-by-step guide on how to buy and dispense fuel yourself at participating NNPC stations:

Step 1: Motorists who want to use the self-service facility should first download the NRL Fuel App. Get the download link from the NNPC X handle.

Step 2: Open the app, tap Fuel Purchase, and select your fuel type.

Step 3: Browse the station list and choose an NNPC Retail station offering the self-service option.

The facility is currently available only at selected stations as NNPC rolls out the new system. Look for the green Self-Serve badge next to the station name. Tap it to select.

Step 3: After selecting the station, enter the amount you wish to spend on fuel. Review the quantity and price, then tap Pay from Wallet. The system will process the transaction based on the amount entered.

Step 4: Once the payment is successful, the app will generate a digital receipt. It contains your Order ID, your Self-Service Code, and a QR Code.

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Step 5: At the pump, enter your 8-digit self-service code on the terminal and press the hash key. Once validated, pick up the nozzle and fuel up—exactly the amount you paid for.

NNPC Executive Vice President, Downstream, Mumuni Dagazau, said the new model was part of the company’s plan to transform conventional filling stations into broader energy and mobility hubs.

At the newly commissioned smart station on Bill Clinton Drive, Airport Road, Abuja, NNPC Retail Executive Director, Retail Operations and Mobility, Shettima Baba-Kukawa, said customers could complete transactions on their phones and dispense the exact amount of fuel purchased.

NNPC said the smart stations would combine conventional petrol sales with services such as electric vehicle charging, liquefied petroleum gas, compressed natural gas and other mobility services.

Source: punchng.com

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