Food market in Lagos
Nigeria’s inflation may settle at 26% year end – PwC
PriceWaterHouseCooper, world professional accounting body, says Nigeria’s inflation may settle at 26 percent this year, especially going by reforms of the Central Bank of Nigeria (CBN) to strengthen the naira.
The projections were contained in PwC’s ‘Nigeria’s 2025 Budget and Economic Outlook’, where Nigerians are assured of a relief after an end of the year.
According PwC, “Inflation is forecasted to decrease to about 26 percent in 2025, driven by tighter monetary policies, improvements in Nigeria’s foreign exchange dynamics, and baseline effects.”
However, the PwC’ economic projections run contrary to that of the federal government which said inflation will decline to 15 percent by the end of the year, from its 34.8 percent in December.
The PwC also disclosed that Nigeria’s GDP will grow by 3.3 percent in 2025, boosted by sustained policy reforms.
But, according to the tax professionals, these growth prospects may be constrained by persistent economic pressures as a result of varying structural challenges.
It also projected that the naira will maintain greater stability on the back of various reforms implemented by the apex Bank.
Indeed, the Central Bank of Nigeria has, through various reforms such as the recently launched Electronic Foreign Exchange Matching Systems and Foreign Exchange code, ensured transparency and efficiency in the market.
These policies have seen the naira hit its strongest stance in eight months, boosting investor confidence in the currency denominated assets.
“The exchange rate is anticipated to stabilise in 2025, supported by ongoing foreign exchange reforms by the Central Bank of Nigeria, which are expected to boost foreign exchange inflows,” PwC said.
The report highlighted strategies business leaders may adopt to boost productivity, profits and overall operational efficiency amid economic challenges.
It said firms should “reinvent your business model”, “rethink costs through core capabilities”, “redefine your funding and capital strategy” and “re-evaluate your talent strategy”.
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