IMF Projects Nigeria’s Inflation Rate To Drop to 23% By 2025

During the recent release of its Global Economic Outlook at the International Monetary Fund/World Bank Spring Meetings in Washington D.C., the International Monetary Fund (IMF) provided insightful projections for Nigeria’s economy, signalling a shift in inflation rates.

Daniel Leigh, the Division Chief of the IMF Research Department, said the impact of Nigeria’s economic reforms, particularly exchange rate adjustments, contributed to a surge in inflation rates, reaching 33.2 per cent in March. This rise was corroborated by recent data released by the National Bureau of Statistics, indicating a significant increase in the country’s inflation rate.

However, amidst these challenging economic circumstances, the IMF remains cautiously optimistic about Nigeria’s economic trajectory. Leigh stated, “We see inflation declining to 23 percent next year and then 18 percent in 2026.” This projection represents a marked improvement from the IMF’s previous forecast of a new single-digit inflation rate of 15.5 percent for 2025, which was predicted last year.

The anticipated decline in inflation rates reflects the IMF’s confidence in Nigeria’s ongoing economic reforms and structural adjustments. Despite the current challenges, the IMF believes that Nigeria’s economy is poised for gradual stabilization and recovery.