THE NEW INFLATION RATE JUST CHANGED EVERYTHING (STOCKS, LOANS & YOUR MONEY)

Hinzugefügt: 2026-05-23

[00:00:00]You guys, have you noticed something lately?

[00:00:03]The price of everything is just skyrocketing. For food stuff, goods and services, and not to talk about fuel price. Just last week Friday, the National Bureau of Statistics announced an increase in inflation.

[00:00:20]It's now at 15.69%.

[00:00:24]This is a 63 basis point increment from last quarter.

[00:00:29]This new inflation number just triggered a chain reaction that could crash some stocks, make your loans more expensive, quietly enrich smart investors, and make the average Nigerian poorer overnight.

[00:00:44]And most people have no idea it is happening already. So, if you think inflation is just about food prices going up, well, you're already losing money.

[00:00:57]Let me show you something scary.

[00:01:00]Inflation is now 15.69%.

[00:01:03][music] If your money is sitting in the bank earning 7% or 8% annually, you are losing about 8% of your wealth every single year.

[00:01:16]Silently, without notification, right?

[00:01:19][music] And no alert. It's just gone.

[00:01:28]Nigeria just released a new inflation figure.

[00:01:31]And here is what most people do not understand.

[00:01:35]Inflation is not just about prices going up.

[00:01:39]It is the master switch controlling interest rates, bank loans, stock prices, and even your daily survival.

[00:01:49]And once inflation rises, the Central Bank of Nigeria will step in.

[00:01:54]Here's what happened next, and pay attention, please, because this affects your money directly.

[00:02:01]When inflation goes up, CBN raises interest rate. Loans become expensive, businesses struggle, and consumers suffer.

[00:02:11]You may say, "Hey Godwin, why should loan become expensive because of inflation?"

[00:02:16]Good question.

[00:02:18]You see that description I gave earlier?

[00:02:20]In times of high inflation, the Central Bank of Nigeria must raise interest rate, purposely, to control the inflation.

[00:02:31]They also regulate money supply in the economy and stabilize the naira, just to make sure the inflation rate does not go beyond and above.

[00:02:41]The raised interest rate leads to commercial banks also increasing its lending rate, too.

[00:02:47]Thereby, making loans expensive.

[00:02:51]Check this out. In 2018, a business could borrow at around 17% interest rate.

[00:02:58]But today, bank loans are pushing beyond 30% plus.

[00:03:03]That means before, if a company borrowed 100 million naira, it pays 17 million naira interest, right? But now, it pays more than 30 million naira as interest alone.

[00:03:17]So, you see that the difference is massive.

[00:03:21]So, what could happen next?

[00:03:23]Companies stop expanding, employment slows down, prices go up, and guess who pays all of this? It's me and you.

[00:03:33]So, let us look at what this actually does to the NGX, that is the Nigerian Stock Exchange Limited.

[00:03:40]Now, this is where smart investors pay attention.

[00:03:44]Because inflation doesn't crash all stocks, right? It separates winners from losers.

[00:03:50]That is why you see that amidst this inflation the stock market has been waxing strong.

[00:03:57]The all share index of the NGX is still going strong at more than 250,000 points.

[00:04:05]This is a record-shattering level in the history >> [music] >> of the NGX.

[00:04:11]This is because the few top companies in terms of market capitalization are behind these goods.

[00:04:20]That is the likes of MTN, Dangote, Seplat, Zenith Bank, etc. And this confuses a lot of people.

[00:04:30]They think the economy and the stock market should move in the same direction.

[00:04:36]If you do not know this, you rush and make emotional decision and possibly sell your stocks out of panic that the economy is sinking due to high inflation.

[00:04:49]If you are one of those that react easily due to stock market headlines and news, please you have to stop this, right? You have to stop it.

[00:04:59]Because you always get punished when you react rashly in the market.

[00:05:05]Some people quietly sell their stocks when they see a bad headline in the news.

[00:05:11]But when things stabilizes, that is when you want to get back into the market.

[00:05:18]Prices would have already gone up before you see the news headlines that things have started flourishing in the economy again.

[00:05:27]This is why I tell people all the time, you cannot build wealth long term because of just the headline news.

[00:05:35]There are always going to be another reason the market is uncertain. There's always going to be another reason why the economy would seem as though it is unstable.

[00:05:45]So, somebody might be like, "Hey Godwin, why are some stocks still going up in a bad economy?"

[00:05:53]Well, this is the part that really confuses people, right? How is the stock market going up when things and life is getting harder?

[00:06:03]It is simple. Investors are running away from raw cash.

[00:06:07]Because holding cash in a high-inflation economy is like holding melting ice.

[00:06:13]It falls flat right before your own eyes.

[00:06:16]So, they move money into stocks, gold, real estate, Bitcoin, etc. Everything that can outrun inflation.

[00:06:25]Keyword, outrun inflation.

[00:06:29]That is also why you see the stocks in the NGX rising even when the economy feels terrible, right? The stock market does not really care about how people feel about the economy.

[00:06:43]The stock market does not only look at what is going on today. It is constantly trying to predict the future.

[00:06:52]Investors and companies are always asking the same questions for the future.

[00:06:57]Will consumer spending increase?

[00:07:00]Will the company valuation rise?

[00:07:03]Will the interest rate eventually go down?

[00:07:07]So, everything about the stock market is forward-looking.

[00:07:13]What the stock market does is to price the future valuation of a particular company.

[00:07:19]This is what currently influences the share price in the market.

[00:07:24]Another thing you have to understand about the stock market is that the market [music] has already been pricing inflation for a long time now.

[00:07:34]Uncertainties are not new, not at all.

[00:07:37]So, they envisage all these uncertainties and adjust accordingly.

[00:07:43]If you've heard something new today and you know that you are getting value from this video, kindly do me a favor right now. Kindly hit that like button and don't forget [music] to subscribe to the channel. This helps the YouTube algorithm to spread this video across to a whole lot of people that want to benefit for such information. As you do that, I appreciate you. Now, let's get back to the video.

[00:08:07]So, let's take a look at some losers in high inflation economy.

[00:08:11]Some consumer goods companies will struggle because Nigerians are buying less.

[00:08:16]>> get your fresh apples.

[00:08:18]They'll migrate to cheaper commodities.

[00:08:20]And sales drop drastically.

[00:08:23]So, their stock prices can either stagnate or even fall.

[00:08:28]So, look at some winners in a high inflation economy, at least in the short term.

[00:08:35]Now, here's the twist that most people miss.

[00:08:39]Banks, telecom companies, health care, energy companies, etc. can actually benefit from high inflation.

[00:08:48]This is because they have pricing power.

[00:08:51]They can easily increase the cost of their products or services and even make more profit during this period.

[00:09:00]While banks can charge higher interest on [music] loans, that is why during high inflation cycles, banking stocks on the NSE sometimes rally.

[00:09:12]But there's a catch to it.

[00:09:14]If things get extremely bad, people default on loans.

[00:09:19]People cannot afford the basics and businesses collapse. Then, all companies will start feeling the pain of extreme inflation.

[00:09:31]Now, let's look at what this means for us as retail investors and don't as just another consumers, right?

[00:09:39]So, let us bring it home right now.

[00:09:41]This inflation height means your rent will likely increase, transportation cost will rise, food prices will keep increasing.

[00:09:50]Your salary will feel smaller.

[00:09:53]And if you have a loan, hm, you're in a tougher position now.

[00:09:58]Because your payment may increase or become harder to even manage.

[00:10:03]So, what do we do like, so what do we What should smart investors be doing in the market right now?

[00:10:10]It's simple.

[00:10:11]Smart investors should have investing structures and framework clearly written to guide them in times like this that fear and panic wants to set in.

[00:10:24]Smart investors are watching interest rates trend, rotating into stronger section in the market, avoiding heavily indebted companies, focusing on value, not hype. Because in times like this, bad decisions becomes very expensive.

[00:10:43]As a smart investor, you should have a written plan for your investment journey.

[00:10:48]You should write it down like what is your long-term goals, what is your risk tolerance, you should know when to buy, when to sell, under what circumstances to sell, etc. And all these have to be customized to how it suits you alone.

[00:11:07]Not copying some random influencer on the internet.

[00:11:10]Successful investing requires emotional discipline, right? You don't have to be checking your portfolio every 1 hour or even every single day to monitor the market.

[00:11:21]You don't have to do that.

[00:11:23]Because regardless, the market will go where it wants to go. Whether you check it every minute, every hour, or every second, it will still go where wants to go.

[00:11:33]Long-term wealth is built by those who stay logical and not those who are illogical.

[00:11:41]So, this is how wealth is transferred in Nigeria.

[00:11:44]Not through headlines, not through the news, but through inflation, through high inflation error.

[00:11:52]The rich position themselves into assets, stocks, high yield investments, while the average person holds cash and gets squeezed at the end of the day.

[00:12:04]So, the next time you hear that inflation has increased, don't just think about food prices alone.

[00:12:11]Think about your investments, your savings, and your future because this one number controls almost everything.

[00:12:20]If you want me to break down the exact NGX stocks that could win or lose in this area of high inflation rate, comment inflation proof in the comment section. Put that in the comment section for me, guys, and don't forget to subscribe to the channel, too, if you have not already.

[00:12:39]So, if you are a high salary earner, you may want to watch this video over here to see the right structure or the appropriate structure to which you layer your investments.

[00:12:50]As I say, wealth is not luck. Wealth is built from information followed with execution. Until I see you next time, I salute.