Nigeria’s GDP Grew On The Year But Slowed On The Quarter; Britain To Tax Interest On Cash In Tax-Free Account; IBM Soars On Quantum Computing Breakthrough; And Taiwan Overtakes India’s Stock Market
- Dipo Owolabi
- 7 days ago
- 6 min read
Nigeria’s economy expanded by 3.89% in the first quarter of 2026, but the latest GDP figures also revealed that growth slowed from the previous quarter despite stronger activity in services and telecommunications. In the UK, Chancellor Rachel Reeves is preparing sweeping ISA reforms that could reshape how millions of savers manage cash and investments, while IBM just added roughly $26 billion to its market value after a major U.S. quantum computing push tied to the CHIPS Act. Meanwhile, Taiwan has officially overtaken India as the world’s fifth-largest stock market, powered largely by the explosive rise of semiconductor giant TSMC and the global AI chip boom. All this and more in today’s Read It And Eat! |
Markets as of 25th of May 2026.. Cells in RED mean that the value is down, cells in Green mean the value is up.
MAJOR HEADLINES
Nigeria’s GDP Grew On The Year But Slowed On The Quarter
Nigeria’s economy grew by 3.89% year-on-year in real terms in the first quarter of 2026, according to new data released by the National Bureau of Statistics (NBS). The figure was higher than the 3.13% growth recorded in Q1 2025, showing that economic activity improved compared to the same period last year. However, the latest number also showed that growth slowed compared to the 4.07% recorded in Q4 2025, highlighting that momentum entering 2026 was weaker than the previous quarter despite continued expansion across key sectors of the economy. Premium Times reports that the services sector remained the strongest contributor to GDP growth during the quarter.
The NBS said the services sector expanded by 4.33% and contributed more than half of total GDP during the period, with telecommunications, financial services, and information technology continuing to drive activity. Agriculture grew by 0.07%, reflecting persistent pressure from insecurity, rising input costs, and structural inefficiencies in food production. Industry recorded stronger performance at 3.42%, helped by improvements in manufacturing and energy-related activities. Oil production averaged about 1.62 million barrels per day, slightly above the 1.57 million barrels per day recorded in Q1 2025, providing additional support to overall output growth.
The broader implication is that Nigeria is still growing, but not yet at a pace strong enough to materially improve living standards for a rapidly expanding population. Inflation, currency pressure, elevated borrowing costs, and weak consumer purchasing power continue to weigh on households and businesses even as headline GDP numbers improve. The slowdown from 4.07% in Q4 2025 to 3.89% in Q1 2026 also suggests that policymakers may face increasing pressure to stimulate growth without worsening inflationary conditions. For investors and businesses, the data reinforces that telecommunications, finance, and digital services remain among the strongest areas of the Nigerian economy, while agriculture and consumer-facing sectors continue to face significant structural challenges. Premium Times
The UK Makes Move To Tax Interest Earned On Cash Held In Tax Free ISAs
UK Chancellor Rachel Reeves is preparing major changes to the country’s Individual Savings Account (ISA) system that could significantly alter how Britons save and invest. According to The Telegraph, Reeves is considering introducing a 22% tax charge on interest earned from cash held within stocks and shares ISAs, with the reforms expected to take effect from April 2027. At the same time, savers under the age of 65 could see the annual cash ISA allowance reduced from £20,000 to £12,000, while still retaining access to the full £20,000 allowance through stocks and shares ISAs. The proposed changes are part of a broader effort by the Treasury to encourage more long-term investing into equities rather than cash savings.
The reforms could affect millions of UK savers who currently use ISAs as one of the country’s most tax-efficient savings vehicles. Under the existing system, interest and investment gains earned within ISAs are largely shielded from taxation. The Telegraph reports that Reeves and Treasury officials believe too much household capital is sitting in low-yield cash savings rather than flowing into productive investments that could support UK companies and capital markets. Critics, however, argue that forcing savers toward riskier investment products during a period of elevated market volatility and economic uncertainty could backfire, particularly for older or lower-risk savers who rely on cash ISAs for financial stability.
The potential policy shift also reflects a much bigger issue facing the UK economy: stagnant investment and weak domestic capital formation. British policymakers have increasingly worried that UK households allocate significantly less money into equities compared to American investors, limiting long-term wealth creation and reducing support for domestic businesses. If implemented, the ISA reforms would mark one of the most aggressive overhauls of British retail savings policy in years and could fundamentally reshape how individuals balance cash protection versus market exposure. For banks, wealth managers, and investment platforms, the changes could trigger a major migration of customer funds into stocks and shares products over the next several years. Telegraph
IBM’s stock surged after the U.S. government unveiled a major quantum computing initiative tied to the CHIPS and Science Act, adding roughly $26 billion to the company’s market capitalization in just days. Yahoo Finance reports that IBM shares jumped more than 11% after the announcement, pushing the company’s market value to approximately $237.8 billion. The rally followed news that the U.S. Commerce Department would support domestic quantum computing development through a new $2 billion initiative, with IBM emerging as one of the clearest beneficiaries due to its long-standing leadership in quantum hardware, software, and enterprise computing systems.
The market reaction reflects how investors are beginning to treat quantum computing as the next major strategic technology race after artificial intelligence. IBM has spent years investing heavily in quantum research through its IBM Quantum division and already operates one of the world’s largest quantum computing ecosystems. Yahoo Finance notes that investors increasingly believe IBM could become a foundational infrastructure player if quantum computing eventually achieves large-scale commercial adoption across industries like pharmaceuticals, logistics, cybersecurity, financial modeling, and materials science. The CHIPS Act backing effectively validates quantum technology as a national strategic priority for the United States.
Importantly, the rally is not just about government funding; it is about positioning. IBM has spent the last several years quietly transforming itself away from legacy enterprise hardware toward hybrid cloud, AI, and now quantum infrastructure. Investors are increasingly rewarding that shift as the company becomes more deeply tied to long-term national technology priorities. Analysts cited by Yahoo Finance also noted that IBM’s relatively lower valuation compared to some AI-focused tech companies leaves room for additional upside if quantum computing investment momentum accelerates further. In other words, Wall Street is beginning to view IBM less as an old technology company and more as a future infrastructure provider for the next computing era. Yahoo Finance |
Taiwan Overtakes India As The World’s Fifth-Largest Stock Market
Taiwan has officially overtaken India to become the world’s fifth-largest stock market, driven largely by the extraordinary rise of Taiwan Semiconductor Manufacturing Company (TSMC). Bloomberg reports that Taiwan’s stock market capitalization climbed to approximately $2.76 trillion, narrowly surpassing India’s market value of about $2.75 trillion. The move reflects the massive investor demand surrounding AI infrastructure and semiconductor manufacturing, sectors where Taiwan and especially TSMC plays an overwhelmingly dominant global role.
At the center of the surge is TSMC, the world’s largest contract chipmaker and the primary supplier of advanced semiconductors for companies like Nvidia, Apple, AMD, and Qualcomm. TSMC’s shares have rallied sharply as global spending on artificial intelligence infrastructure continues accelerating, pushing the company’s valuation to historic highs. Bloomberg notes that TSMC alone now accounts for a very large share of Taiwan’s overall market capitalization, effectively turning the country’s stock market into one of the clearest public-market proxies for global AI demand and advanced semiconductor manufacturing.
The development also highlights how differently global investors are currently valuing AI-linked economies versus broader emerging-market growth stories. India still maintains stronger long-term demographic and domestic consumption fundamentals, but Taiwan’s dominance in advanced chip production has made it one of the biggest immediate winners of the global AI boom. The shift is symbolically significant because it shows how semiconductor infrastructure not just software has become one of the most valuable strategic assets in the global economy. As AI spending continues rising worldwide, Taiwan’s market position is increasingly tied to whether demand for advanced chips can remain this strong over the coming years. Yahoo Finance
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