Nigeria’s Inflation Rate Predicted To Plummet To 27% By December – A Game-Changer For The Economy

Nigeria’s Inflation Rate Predicted To Plummet To 27% By December – A Game-Changer For The Economy

According to the latest Nigerian Economic Summit Group (NESG)-Stanbic IBTC Business Confidence Monitor report, this decrease is anticipated as a result of the gradual reduction in high petrol prices, which have been a significant…Nigeria’s Inflation Rate Predicted To Plummet To 27% By December – A Game-Changer For The Economy

driver of inflation.

The report highlights that inflation will likely remain high through the third quarter of 2025 but is expected to dip below 30% thereafter, assuming stable petrol prices without adverse shocks.

Key factors influencing this projection include fiscal policies, exchange rate fluctuations, and food supply stability. The report suggests that with easing petrol costs, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria may adopt a more accommodating monetary policy stance in late 2025, potentially lowering interest rates to boost economic activities.

In addition, the report notes a slight recovery in business performance, driven by seasonal demand during the festive period. The Current Business Performance Index rose to +0.77 in December 2024 from -2.74 in November, with agriculture leading the way, followed by non-manufacturing sectors. However, manufacturing, trade, and services sectors faced significant challenges.

Despite a slight decline in the Future Business Expectation Index to +28.61 in December from +33.17 in November, there remains cautious optimism for improved business conditions in the early months of 2025.

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