The Manufacturers Association of Nigeria (MAN) has projected that Nigeria’s headline inflation rate will drop to 14 per cent in 2026.
According to the association, this drop in inflation figure will be largely driven by a combination of easing food prices, stable energy costs, and continued appreciation of the naira.
Director of Research and Economic Policy Division at MAN, Oluwasegun Osidipe made the projections at a press conference on the 2025 MAN Think Tank Session, held in Lagos.
“Headline Inflation will decelerate further to 14 per cent, supported by easing food prices, stable energy prices and appreciation of the naira,” he stated.
He expressed optimism that the Central Bank of Nigeria (CBN) will sustain its disinflationary policy measures, which are expected to create a more stable macroeconomic environment conducive to growth and investment.
Continuing, Osidipe also forecast that the benchmark interest rate would be reduced to around 23 per cent in 2026 as part of the CBN’s efforts to stimulate credit expansion and boost output growth.
“The Central Bank of Nigeria (CBN) is anticipated to implement further cuts in the benchmark interest rate to about 23 per cent, in line with dis-inflationary trend and to stimulate credit expansion and output growth.
“Further reduction in lending rates and completion of the bank recapitalisation exercise will enhance credit availability to manufacturers, strengthening investment and capacity utilisation,” Osidipe said.
The association also projected further strengthening of the naira. According to Osidipe, “For manufacturers, naira is projected to appreciate further to N1,300–N1,400/$, driven by global oil price recovery, stronger external reserves, robust export earnings, increased foreign investments and remittance inflows.”
MAN hinged the expected gains on effective execution of new tax laws’ incentives, operationalisation of the National Single Window Project and purposeful implementation of Nigeria Industrial Policy in close alignment with the “Nigeria First” policy framework.
According to Osidipe, overall GDP growth was expected to reach 4 per cent in 2026 due to higher oil output and further improvement in fiscal space.
He added that expansion in the financial and manufacturing sectors, and heightened consumption during the election campaigns in Q4 2026, would also spur GDP growth.
