The International Monetary Fund (IMF) has projected that Nigeria’s headline inflation rate will escalate to 37% by 2026, following the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS). This projection is detailed in the IMF’s April 2025 World Economic Outlook report.
Key Highlights:
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Current Inflation Trends: The IMF estimates that Nigeria’s inflation will average 26.4% in 2025 and rise to 37% in 2026 despite recent economic reforms aimed at stabilisation.
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Economic Growth Forecast: The IMF has downgraded Nigeria’s economic growth forecast for 2025 to 3.0%, a reduction from the earlier projection of 3.2%, primarily due to declining global crude oil prices.
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Policy Recommendations: To address these challenges, the IMF recommends that Nigeria:
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Maintain a tight monetary policy stance to control inflation.
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Channel fiscal savings from fuel subsidy removals into growth-enhancing investments.
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Accelerate and broaden the delivery of targeted cash transfers to support those experiencing food insecurity.
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Diversify the economy to reduce dependence on oil revenues.
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