S&P Global Ratings has warned that Nigeria faces the highest inflation risk among emerging markets this year, driven by rising energy and fertilizer prices linked to the Iran conflict and the effects of El Niño. The agency raised its forecast for Nigeria’s average inflation rate to 16.9% while lowering projected economic growth to 3.7%. The agency cited stronger-than-expected inflationary pressures from higher oil prices. Although global crude prices have eased, fuel costs remain elevated across much of Africa, increasing pressure on households and businesses. S&P also expects many emerging-market central banks to delay interest rate cuts or tighten monetary policy further. In South Africa, the agency raised its inflation forecast for 2026 to 4.3% from 3.5%. It also reduced growth expectations, highlighting the broader economic impact of higher energy prices and El Niño-related disruptions.
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