The International Monetary Fund (IMF) has projected a decline in Nigeria’s inflation rate to 23 percent in 2024 and further to 15.5 percent in 2025, according to Daniel Leigh, the IMF’s Division Chief of the Research Department.
Nigeria’s inflation rate reached 28.92 percent in December 2023, prompting the Central Bank of Nigeria’s (CBN) foreign exchange reforms to curb inflation and stabilize the naira.
Leigh emphasized that the CBN’s monetary tightening measures, including a significant interest rate hike to 18.8 percent, are expected to contribute to reducing inflation from 24.6 percent in 2023 to 23 percent in 2024 and around 15.5 percent in 2025. He stressed the importance of revenue mobilization and expanding the tax base to support social initiatives amid ongoing efforts to conquer inflation.
