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Inflation above 30% in 19 states, FCT despite national easing

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Despite Nigeria’s headline inflation rate easing marginally in June 2026, residents in more than half of the country’s states continued to face annual inflation above 30 per cent, with Niger, Kogi and the Federal Capital Territory recording the highest rates.

The latest Consumer Price Index report released by the National Bureau of Statistics showed that headline inflation slowed slightly to 15.91 per cent in June from 15.93 per cent recorded in May.

However, an analysis of the state-by-state inflation data by The PUNCH showed that 19 states and the FCT, representing 20 of Nigeria’s 37 sub-national entities or 54.1 per cent, recorded annual all-items inflation rates above 30 per cent in June.

The analysis also showed that Imo, which recorded the country’s lowest annual inflation rate at 19.47 per cent, was still 3.56 percentage points higher than the national headline inflation rate, showing the wide disparity between the national average and inflation experienced across the states.

According to the NBS data, Niger recorded the highest annual headline inflation rate at 42.23 per cent, followed by Kogi with 41.59 per cent and the FCT with 39.91 per cent.

The NBS report read, “In June 2026, the All-Items inflation rate on a Year-on-Year basis was highest in Niger (42.23 per cent), Kogi (41.59 per cent), and Abuja (39.91 per cent), while Imo (19.47 per cent), Ebonyi (20.79 per cent) and Katsina (21.87 per cent) recorded the lowest rise in Headline inflation on a Year-on-Year basis.”

Other states with inflation rates above 30 per cent were Kwara (36.52 per cent), Plateau (35.82 per cent), Sokoto (35.22 per cent), Benue (35.06 per cent), Osun (34.46 per cent), Yobe (34.40 per cent), Kebbi (34.07 per cent), Enugu (34.00 per cent), Bauchi (33.68 per cent), Gombe (33.51 per cent), Oyo (32.81 per cent), Lagos (32.28 per cent), Akwa Ibom (31.85 per cent), Adamawa (31.82 per cent), Ekiti (31.00 per cent), Taraba (30.54 per cent), and Abia (30.28 per cent).

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The remaining 17 states recorded annual inflation below 30 per cent. Among them, Imo posted the lowest rate at 19.47 per cent, followed by Ebonyi (20.79 per cent) and Katsina (21.87 per cent).

Others were Rivers (23.73 per cent), Zamfara (24.00 per cent), Kaduna (24.71 per cent), Edo (25.90 per cent), Cross River (25.91 per cent), Delta (26.31 per cent), Borno (26.62 per cent), Kano (26.80 per cent), Anambra (27.37 per cent), Ondo (28.14 per cent), Ogun (28.18 per cent), Jigawa (29.06 per cent), Nasarawa (29.11 per cent), and Bayelsa (29.66 per cent).

The bureau, however, noted that inflation figures should not be used for direct interstate price comparisons because consumer spending patterns and the weighting assigned to goods and services differ across states.

The report also showed that food inflation remained considerably higher across many states than the national average. Kogi recorded the highest annual food inflation rate at 53.02 per cent, followed by Niger (43.83 per cent) and Benue (40.83 per cent).

The FCT recorded 40.20 per cent, while Adamawa (39.61 per cent), Osun (39.56 per cent), Kwara (39.00 per cent), Kebbi (37.59 per cent), Sokoto (37.01 per cent), Plateau (36.84 per cent), Yobe (36.68 per cent), Enugu (35.24 per cent), Gombe (34.43 per cent), Kaduna (34.41 per cent), Bayelsa (34.03 per cent), Jigawa (33.92 per cent), Ekiti (33.04 per cent), Akwa Ibom (32.93 per cent), Edo (32.66 per cent), Bauchi (31.54 per cent), Zamfara (30.84 per cent), Delta (30.66 per cent), Nasarawa (30.48 per cent), Cross River (30.39 per cent), and Oyo (30.17 per cent) also recorded food inflation above 30 per cent.

At the other end of the ranking, Katsina recorded the lowest annual food inflation rate at 19.15 per cent, followed by Rivers (23.81 per cent) and Imo (24.60 per cent).

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Nationally, food inflation stood at 17.52 per cent year-on-year in June, compared with 25.41 per cent in the corresponding period of 2025. On a month-on-month basis, however, food inflation accelerated to 3.75 per cent from 2.98 per cent in May, driven by increases in the prices of crayfish, fresh pepper, tomatoes, dried green peas, yam flour, water yam, beef, banana, cassava flour, cowpea, garri, Irish potatoes and yam tubers, according to the NBS.

The state-level data also reflected divergent monthly price movements. Niger recorded the highest month-on-month headline inflation at 11.65 per cent, followed by Katsina (8.13 per cent), Kwara (7.52 per cent), Gombe (7.09 per cent), Kebbi (6.99 per cent), Plateau (6.53 per cent), and Lagos (6.37 per cent).

In contrast, Bayelsa recorded the largest monthly decline in headline inflation at -6.48 per cent, followed by Benue (-5.58 per cent), Cross River (-5.12 per cent), Borno (-4.37 per cent), and Anambra (-4.17 per cent).

For food inflation, Katsina recorded the highest month-on-month increase at 16.82 per cent, ahead of Kebbi (9.79 per cent) and Niger (8.96 per cent), while Borno (-3.54 per cent), Benue (-2.36 per cent), and Bayelsa (-1.34 per cent) recorded the biggest monthly declines.

Although Nigeria’s headline inflation rate eased marginally in June, the latest figures indicate that price pressures remain elevated across much of the country, with more than half of the states and the FCT still recording annual inflation above 30 per cent.

Commenting on the latest inflation figures, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the June report pointed to a broad stabilisation in headline inflation but warned that rising food prices remained the biggest threat to households.

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Yusuf noted that while headline inflation eased marginally from 15.93 per cent in May to 15.91 per cent in June, the acceleration in food inflation showed that structural pressures persisted across the economy.

He said, “The dominant concern in the report is the renewed acceleration in food inflation. Year-on-year food inflation increased from 17.43 per cent to 17.52 per cent, while month-on-month food inflation rose sharply from 2.98 per cent to 3.75 per cent, the strongest monthly increase in several months. This suggests that food prices have resumed an upward trajectory after a brief period of moderation.”

According to him, food inflation remains the biggest driver of Nigeria’s cost-of-living crisis, eroding household purchasing power, worsening poverty and food insecurity, and weakening the inclusiveness of ongoing economic reforms.

Yusuf argued that the inflation challenge remained largely structural rather than monetary, citing insecurity, high transportation and logistics costs, elevated energy prices, rising fertiliser costs, supply chain disruptions and imported inflation as the major drivers of rising prices.

He added that the June inflation figures did not justify another monetary policy tightening by the Central Bank of Nigeria, saying the immediate priority should be coordinated structural reforms to boost food production, improve logistics, reduce energy and production costs, deepen domestic petroleum refining and strengthen productivity across the economy.

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US Government Warns American Business Executives About Investing In Nigeria

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A United States Department of State report has warned American business executives in Nigeria.

The department warned that insecurity, corruption, port inefficiencies, and regulatory uncertainty could significantly hinder investment in Nigeria.

It was reports that the department gave the warning in its 2026 Investment Climate Statements on Nigeria.

The report explained that those challenges continue to weigh on the country’s business environment despite signs of macroeconomic stability.

The department said the country’s investment landscape has been shaped by the outcomes of “painful but necessary” structural reforms introduced by the President Bola Tinubu administration.

The report said the removal of fuel subsidies and liberalisation of the foreign exchange market initially triggered significant economic volatility, although early 2026 indicators suggested some stabilisation.

However, it warned that security concerns, administrative bottlenecks and the social consequences of economic reforms remain significant considerations for foreign investors.

“The security environment is a primary variable which gives pause to potential investors,” the report said.

It noted that although attacks on oil infrastructure in the Niger Delta have decreased, oil theft and illegal bunkering persist.

In the North, the expansion of terrorist and ‘bandit’ groups continues to degrade the climate for agribusiness and mining,” the document added.

The report also raised concerns about how regulators treat foreign business executives in disputes, citing the detention of Tigran Gambaryan, a US citizen and Binance executive, for nearly eight months in 2024.

“Furthermore, the use of coercive exit bans and detentions, highlighted by the high-profile nearly eight-month detention in 2024 of U.S. citizen Binance employee Tigran Gambaryan, serves as a cautionary note for foreign executives regarding the risks of aggressive regulatory friction,” it said.

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The report said such cases could shape perceptions of Nigeria as a destination for foreign investment.

The department identified inefficiencies at Nigerian seaports as another major challenge for businesses, particularly those dependent on imports and exports.

“Port inefficiency remains a significant ‘hidden tax’ on investment,” the report said.

It noted that the Lekki Deep Seaport handled $9.6 billion in trade in 2025 and operated at 50 per cent capacity, helping to ease pressure on older facilities.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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