The Centre for the Promotion of Private Enterprise, CPPE, says Nigeria’s inflation may moderate slightly in 2025.
CPPE Executive Director, Muda Yusuf, disclosed this in a statement titled Nigeria Economic Review 2024 and Economic Outlook 2025.
The group of economic experts noted that Nigeria’s inflation, which was at 34.60% in November 2024, may slow down. down due to the expected reduction in exchange rate volatility and a possible rebound of the naira against the dollar.
According to the CPPE, global oil prices are expected to increase in 2025 under the presidency of President Donald Trump in the United States.
“Inflation may slow slightly due to the expected reduction in exchange rate volatility and the possible recovery of the naira.
“Moderation in energy costs as geopolitical tensions ease due to the influence of the Trump presidency. Global oil production is likely to increase as the United States increases production and eases the embargo on Russia. These are the possible consequences of the Trump presidency.
“There is also the factor of the base effect in the inflation figures, as inflation was generally high in 2024,” CPPE said.
However, he explained that inflation in Nigeria may not fully dissipate in 2025 due to high energy costs, exchange rates, transportation costs and other key factors.
“However, the following main drivers of inflation may not disappear completely by 2025: high energy costs, including electricity tariffs, exchange rates, transportation costs, high interest rates, high costs of liquidating goods, the impact of uncertainty on agricultural production. . and food supplies, climate change and floods, imported inflation resulting from geopolitical tensions, supply chain disruptions, trade wars and tight global monetary conditions.
