The Centre for the Promotion of Private Enterprise (CPPE) has projected that Nigeria’s inflation rate may moderate slightly in 2025, driven by expected reduction in exchange rate volatility and a possible rebound of the naira.
According to Dr. Muda Yusuf, CEO of CPPE, the current disinflation trend is a welcome development, but more needs to be done to address the structural issues driving inflation.
The CPPE’s projections suggest that the inflation rate may decline further due to improved macroeconomic conditions, including relative exchange rate stability and better investor sentiment.
However, Dr. Yusuf cautions that relying heavily on monetary policy tools to tackle inflation has its downside effects, particularly on interest rates and businesses’ access to credit.
To sustain the disinflation momentum, the CPPE recommends enhancing food security and agricultural productivity, reducing logistics and transport costs, addressing energy and production costs, and expanding access to affordable finance.
Additionally, the think tank Emphasises the need for coordinated monetary, fiscal, and structural reforms to deliver tangible relief to citizens and foster inclusive economic recovery.
Dr. Yusuf highlights that business confidence is rising, but consumer confidence remains fragile, underscoring the need for policies that enhance productivity, stabilize prices, and reduce the structural cost of doing business.
With consistency, coordination, and structural reforms, Nigeria can achieve a stable single-digit inflation rate over the medium term, anchoring growth, improving welfare, and restoring confidence in the economy.
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