The World Bank has estimated that Nigeria’s inflation rate will drop to around 24.8% this year and further to 15.1% by 2026. It noted that the projected decline was premeditated on monetary policy tightening and exchange rate stabilisation in Nigeria.
The World Bank, in its latest publication entitled, “African Pulse,” detailed the issues shaping African economies in 2024 and beyond, noting that reforms will spur growth in Nigeria.
The global lender specified that the non-oil sector will see slow growth unless adequate structural reforms are put in place.
The report noted that Nigeria’s growth projects are too low when compared with its peers across West and Central Africa.
Furthermore, the Bretton Wood institute stated that elevated food prices and local currency weakness are major drivers of inflation in Sub-Saharan Africa (SSA), with a third of the countries in the region experiencing double-digit food inflation.
The global lender attributed the high food inflation across the SSA to adverse effects of climatic conditions like the El Nino weather conditions and flooding, together with geopolitical tensions in the Middle East and Europe.
Nigeria’s inflation rate reached 31.70% in February 2024, according to the National Bureau of Statistics (NBS), with food inflation at 37.92%- a 27yr high. The country’s inflation rate has been on the rise since January 2023.