Nigeria’s headline inflation is projected to average 30.5% year-on-year in 2025 but is expected to decline to 27.1% by December, according to a recent NESG-Stanbic IBTC report. The easing of high petrol prices from inflation calculations is seen as a key factor in this anticipated decline, barring any unexpected shocks.
The report forecasts a growth rate of 3.5% for Nigeria’s economy in 2025, up from 3.2% in 2024. It also predicts a shift in monetary policy, with the Central Bank of Nigeria likely adopting a more accommodative stance, potentially reducing interest rates to stimulate economic activity.
Improved business performance in late 2024 and cautious optimism for early 2025 were highlighted, particularly in agriculture and non-manufacturing sectors, despite ongoing challenges in manufacturing, trade, and services.