The International Monetary Fund (IMF) is projecting a decline in inflation rates in the Nigerian economy to 23 per cent next year and then 18 percent in 2026.
The projection was expressed in a recent release of its Global Economic Outlook at the International Monetary Fund/World Bank Spring Meetings in Washington D.C., on Tuesday,
Making the projection, Daniel Leigh, IMF Division Chief of Research, highlighted the impact of Nigeria’s economic reforms, including exchange rate adjustments, which led to a surge in inflation rate to 33.2 percent in March.
Recent data from Nigeria’s National Bureau of Statistics show that the country’s inflation rate rose to 33.2 percent.
Food inflation likewise increased to over 40 per cent in the first quarter of 2024.
“We see inflation declining to 23 per cent next year and then 18 percent in 2026,” said Leigh.
Last year, the IMF had predicted a new single-digit (15.5 per cent) inflation rate for Nigeria for 2025.
Leigh also spoke of economic growth in the country, which is projected to rise from 2.9 percent last year to 3.3 percent this year, on account of expansion in the oil sector, improved security, and advancements in agriculture due to better weather conditions and the introduction of dry season farming.
He further spoke of a broad-based increase in Nigeria’s financial and ICT spheres.
Leigh observed that: “Inflation has increased, reflecting the reforms, the exchange rate, and its pass-through into other goods from imports to other goods.”
He added that the IMF revised its inflation projection for the current year to 26 percent and that tight monetary policies and significant interest rate increases during February and March are expected to curb inflation.
