World Bank Projects Lower Inflation for Nigeria in 2025

The World Bank has projected that Nigeria’s inflation rate will average 22.1 per cent in 2025, attributing the anticipated decline to the Central Bank of Nigeria’s tight monetary stance aimed at restoring price stability and anchoring inflation expectations.

The projection was contained in a statement published yesterday on the World Bank’s website, following the formal launch of the latest edition of the Nigeria Development Update report in Abuja.

The report highlighted that while macroeconomic indicators have improved significantly, particularly GDP growth, revenue mobilisation, and fiscal consolidation, headline inflation remains a major issue.

The World Bank identified the major drivers of elevated inflation in recent years to include the removal of petrol subsidies, exchange rate unification, rising logistics and energy costs, and recurring food supply disruptions.

However, it noted that the Central Bank’s ongoing monetary tightening efforts are starting to show positive signs, with inflationary pressures expected to ease going into 2025.