Nigeria’s inflation rate to stand at 23 per cent by 2025.

The projection of the 23 per cent inflation rate by 2025 for Nigeria by the multilateral institution, comes following its  2023 prediction, that Nigeria’s  inflation rate for 2025 would slow to 15.5 per cent by 2025.

Nigeria’s inflation rate rose to 33.2 per cent in March. Also, the food inflation rate also increased to over 40 per cent in the first quarter of 2024, according to the statistics office.

In its Global Economic Outlook at the IMF/World Bank Spring Meetings in Washington D.C., on Tuesday, the multilateral institution highlighted the impact of the President Bola Tinubu economic reforms and the currency policies as Nigeria’s  inflation rate, which stood at 33.2 per cent in March.

 “We see inflation declining to 23 per cent next year and then 18 per cent in 2026”, said Daniel Leigh, Division Chief of the IMF Research Department.

Leigh further elaborated on Nigeria’s economic growth, which is expected to rise from 2.9 per cent last year to 3.3 per cent this year, attributing this expansion to the recovery in the oil sector, improved security, and advancements in agriculture due to better weather conditions and the introduction of dry season farming.

He also noted a broad-based increase in Nigeria’s financial and IT sectors.

“Inflation has increased, reflecting the reforms, the exchange rate, and its pass-through into other goods from imports to other goods,” the IMF official explained.

According to him, the IMF revised its inflation projection for the current year to 26 per cent but emphasised that tight monetary policies and significant interest rate increases during February and March are expected to curb inflation.