Nigeria’s Inflation to Ease Slightly in 2025 Amid Naira Rebound, CPPE Predicts

|By Adejumo Adekunle –

• Naira Recovery Expected: CPPE sees reduced exchange rate volatility aiding inflation moderation.
• Oil Market Boost: Trump’s presidency may drive global oil production and ease energy costs.
• Inflationary Pressures Persist: High energy prices, transport costs, and insecurity remain key drivers.

Nigeria’s inflation rate, currently at 34.60% as of November 2024, could witness a slight decline in 2025, according to the Centre for the Promotion of Private Enterprise (CPPE). Muda Yusuf, CPPE’s Executive Director, revealed this in a statement titled Nigeria 2024 Economic Review and 2025 Economy Outlook.

CPPE attributed the anticipated moderation to reduced exchange rate volatility and a potential recovery of the naira against the dollar. The group also highlighted geopolitical developments, such as the expected rise in global oil production under U.S. President Donald Trump, as factors that could ease energy costs.

However, CPPE cautioned that certain inflationary pressures, including high energy prices, transportation costs, and exchange rate fluctuations, may persist, keeping inflation from a significant decline.