The International Monetary Fund (IMF) has forecast that Nigeria’s inflation will drop to 26 per cent this year.
It made this known while presenting global projections from its World Economic Outlook at a news conference in Washington DC on Tuesday.
Division chief of the research department at IMF, Daniel Leigh, who addressed the conference, said inflation would drop in Nigeria alongside global inflationary pressures estimated to decline from 2.8 per cent at the end of 2024 to 2.4 per cent at the end of 2025.
According to him, the IMF has seen expansion from the recovery in the oil sector with a better security situation, and also improved agriculture, benefiting from the better weather conditions and the introduction of dry season farming.
It further noted the broad-based increase also in the financial sector in the IT sector, but said “inflation yes, it has increased. Part of this reflects the reforms in the exchange rate. So this explains also why we revised our inflation projection for this year at 26%.”
“But with the tight monetary policies and the significant interest rate increases during February and March, we see inflation declining to 23% next year and then 18% in 2026. So in the right direction,” Leigh stated.
The lender also asked central banks across the world to ensure that inflation is durably heading back to target.
