Professional predicts Nigeria’s inflation price to drop to fifteen% by finish of 2025 

CEO and Founding father of Awabah, Tunji Andrews, has projected that Nigeria’s inflation price will decline to fifteen% by the top of 2025.

Andrews made this prediction throughout his look on the Drinks and Mics podcast, hosted by Ugo Obi-Chukwu, CEO of Nairametrics, on Friday.

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Andrews expressed optimism in regards to the present {economic} trajectory, stating,

“We’re hitching nearer to the 15[% mark], and we’re going to get there. Should you go searching, simply typically really feel Nigeria… they [prices] don’t have to come back down for inflation to drop. They only have to stay steady.” 

He additional defined that whereas sure commodities like dairy and eggs expertise value fluctuations, the costs of on a regular basis gadgets have remained comparatively steady.

“You’ve not gone to the grocery store not too long ago and seen a spike in costs of regular commodities. Common stuff that you simply usually purchase on a day-to-day foundation has nonetheless stayed the identical costs. So, I do imagine that we are going to proceed to see a drop in inflation until the top of the 12 months,” Andrews famous. 

The rebasing impact 

The Awabah CEO additionally highlighted the influence of modifications within the inflation basket, which now features a broader vary of products and providers.

In accordance with him, the earlier inflation basket was closely influenced by petrol costs, however the present basket incorporates gadgets much less affected by gasoline prices.

“Thoughts you, the final context of inflation is now enlarged. We’ve put much more issues inside it. And people issues usually are not as affected by petrol as we used to have. The earlier basket was closely affected by petrol,” he defined. 

Andrews’ feedback come amid ongoing efforts by the Central {Bank} of Nigeria (CBN) and the federal authorities to curb inflation, which has remained a major problem for the financial system.

The newest Client Worth Index and Inflation report from the Nationwide Bureau of Statistics (NBS) reveals that Nigeria’s inflation price fell to 23.18% in February 2025, down from 24.1% in January 2025.

Inflation might decelerate additional 

An {economic} skilled, Dr. Muda Yusuf, CEO of the Centre for Safety of Non-public Enterprises (CPPE), talking earlier with Nairametrics projected a possible additional decline in Nigeria’s inflation price in 2025, citing a mixture of presidency insurance policies and enhancing macroeconomic circumstances.

Dr. Yusuf defined, “The additional deceleration in inflation price in February may be ascribed to 2 elements. The primary is the bottom impact. Once we evaluate the 2025 figures to 2024, you’re more likely to see a major deceleration [in the inflation rate gap]. Inflation is basically measured on a year-on-year foundation, and since costs in 2024 have been extremely elevated. 

President Bola Tinubu has repeatedly said his administration’s unwavering dedication to decreasing the inflation price from 34.6% to fifteen% by the top of 2025.

President Tinubu’s 2025 price range presentation, made on December 18, 2024, projected a discount in inflation from the present price of 34.6% to fifteen% in 2025.

• The proposed price range, which is about N22 trillion increased than that of 2024, contains vital allocations for protection and safety (N4.91 trillion), infrastructure (N4.06 trillion), well being (N2.4 trillion), and training (N3.5 trillion), amongst different sectors.
• Regardless of these formidable plans, analysts stay skeptical in regards to the feasibility of those projections, particularly the inflation goal.
• When Tinubu assumed workplace in Might 2023, Nigeria’s inflation price stood at 22.41%, in line with the Nationwide Bureau of Statistics (NBS).
• Nevertheless, inflation surged to an alarming 34.6% by November 2024, an increase many economists attribute to the president’s controversial insurance policies, together with the elimination of the petrol subsidy and the unification of the nation’s international alternate charges.

Regardless of these challenges, President Tinubu’s price range speech projected optimism, not just for inflation but additionally for the alternate price, which he believes will enhance from N1,700 per greenback to N1,500 per greenback by 2025.