Nigeria’s Inflation Rate May Drop to 27% by December, Experts Predict

January 10, 2025

2 minutes read

inflation

Nigeria’s inflation rate is projected to decline to 27% by December 2025, according to an economic outlook report by ARM Securities Limited. The report suggests that stabilizing macroeconomic policies and increased foreign exchange inflows will contribute to easing inflationary pressures in the country.

Currently, Nigeria’s inflation rate stands at a high of 33.2%, driven by factors such as currency devaluation, subsidy removal, and global supply chain disruptions. However, experts believe the implementation of targeted monetary policies by the Central Bank of Nigeria (CBN) and fiscal measures by the government will gradually decelerate inflation over the year.

The report highlights the potential stabilization of the naira as a significant driver of this projected decline. With Nigeria’s foreign exchange reserves expected to receive a boost from foreign direct investments and export revenue, the naira’s exchange rate against the dollar is anticipated to become less volatile.

ARM also predicts a reduction in the Monetary Policy Rate (MPR) by the second half of the year, which is currently set at 18.75%. The adjustment would signal a shift toward pro-growth policies aimed at stimulating economic recovery and curbing inflation.

According to financial analysts, another factor expected to influence the inflation rate is improved agricultural productivity. The government’s initiatives to enhance food security and reduce dependence on imports could lower food inflation, which has consistently been a major component of the overall inflation rate.

Despite these optimistic projections, risks remain. Challenges such as insecurity, fiscal deficits, and potential global economic shocks could slow the pace of inflation reduction. Additionally, analysts caution that the impact of subsidy removal on transportation and energy costs might continue to exert upward pressure on consumer prices.

Nevertheless, stakeholders are confident that the measures being implemented will yield positive outcomes. “If the government continues to adopt prudent fiscal policies and the CBN maintains its focus on achieving exchange rate stability, Nigeria could see significant progress in tackling inflation,” said an economist at BusinessDay.

The projected decline in inflation is expected to benefit both consumers and businesses, boosting purchasing power and encouraging investment in the local economy. However, sustained commitment to reforms and macroeconomic stability will be crucial to achieving and maintaining this goal.

As Nigeria navigates its economic challenges, the government’s ability to effectively implement its policies will determine whether the country can meet its inflation target by the year’s end.

Share:
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Related Links

Labake Olododo Shines at Nigerian Box Office, Grossing ₦50.4 Million in Opening Weekend

Iyabo Ojo’s Latest Film Dominates Nollywood in 2025 Nollywood’s newest blockbuster, Labake Olododo, has made ...

Jim Ovia Freedom of the City of London

Tinubu Congratulates Jim Ovia on Freedom of the City of London Honor

President Bola Tinubu has extended warm congratulations to Jim Ovia, the founder and chairman of ...

Crude oil prices

Crude Oil Prices Rise as Trump Warns of Tariffs on Russia and Iran

Crude oil prices surged on Monday following former U.S. President Donald Trump’s threats to impose ...

Tether’s Bitcoin holdings

Tether’s Bitcoin Holdings Surge Past $8.29 Billion After $735 Million Q1 Purchase

Tether’s Bitcoin holdings have reached a staggering $8.29 billion following its latest acquisition of 8,888 ...

Latest News

Today in History

April 2nd is the day in 1962 that the first official Panda crossing is opened outside Waterloo station, London.

Exchange Rate Per Dollar

AM Armenian Dram390.7361
GH Ghana Cedi15.5078
GM Gambian Dalasi72
GN Guinea Franc8,657.35
NG Nigerian Naira₦1,537.05
CF CFA Franc BEAC607.6517
02 Apr · CurrencyRate · USD
CurrencyRate.Today
Check: 02 Apr 2025 02:05 UTC
Latest change: 02 Apr 2025 02:00 UTC
API: CurrencyRate
Disclaimers. This plugin or website cannot guarantee the accuracy of the exchange rates displayed. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates.
You can install this WP plugin on your website from the WordPress official website: Exchange Rates🚀

YOUR THOUGHTS

Let us know what you think

Contact the People’s Paper with feedback on stories and how we could make wapress.africa even better!

newsletter image

Stay up to date with the latest from West Africa Press

Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on WApress.

Subscribe Newsletter!

Be the first to receive our latest contents and more...

Need help?