Nigeria Inflation seen spike by 29.1% in 2024, abate 17.2% in 2025 – Reuters Poll

Date:

In Nigeria, the trajectory of inflation remains concerning, with expectations that it will persist at high levels due to challenges such as sporadic flooding and currency instability.

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Despite efforts by the central bank to implement more stringent monetary policies, inflation is anticipated to rise to 29.1% this year before gradually declining to 17.2% next year.

This situation reflects the country’s heavy reliance on single commodity currency inflows like crude oil, exacerbating the impact of the acute dollar shortages across the continent. However, countries with more diversified dollar revenues, such as Kenya, are poised to experience a more significant moderation in inflation.

**Factors Contributing to Nigeria’s High Inflation Rate**

The persistent inflationary pressures in Nigeria are multifaceted. Around 50% of the Consumer Price Index (CPI) basket is attributed to food prices, which continue to soar due to various factors including flooding in many parts of the country, rising fertilizer costs, and ongoing insecurity in food-producing regions.

Nigeria’s central bank has responded to the inflationary challenges by raising the monetary policy rate by 200 basis points to 24.75%. Despite these efforts, the impact on inflation has been limited, highlighting the complex nature of the issue.

**Comparative Analysis and Regional Outlook**

Ghana, Angola, and Zambia are also facing inflationary pressures, albeit to varying degrees. Ghana’s inflation, which averaged 40.3% last year, is expected to slow markedly to 18.7% this year and then to 12.1% in 2025. Similarly, Angola and Zambia are forecasted to experience declines in inflation rates in the coming years.

However, Kenya stands out as a beacon of stability in the region, with inflation expected to remain relatively low compared to its counterparts. Standard Chartered recently adjusted its inflation forecasts for Kenya, taking into account factors such as currency appreciation and improved food prices.

**Implications and the Path Forward**

The persistently high inflation rates in Nigeria underscore the urgent need for comprehensive economic reforms. Addressing structural issues such as infrastructure development, agricultural productivity, and currency stability will be crucial in mitigating inflationary pressures and fostering sustainable economic growth.


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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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