As the naira maintains stability in the first quarter of 2025, inflation could potentially drop to 33.1%, a foremost economist, Bismarck Rewane has hinted.
He also said ‘fairly’ lower food and fuel prices could help the economic resist inflation during the period.
Rewane, who is the managing director of Financial Derivatives Company made these assertions in a presentation at Lagos Business School (LBS) Breakfast Session themed: “Nigeria in 2025: Breakthrough or Fall through.”
According to him, inflation is expected to ease marginally to around 33.1% in the first quarter of 2025, due to the modest impact of a stable naira and fairly lower prices of food, fuel and other necessities.
“The gains seen so far on the stability of the naira is a good news,” Rewane noted.
However, the economist bemoaned the continued decline in Nigeria’s external reserves in the last one month, shedding $1.38 billion so far this year, reaching $39.49 billion as at February 5.
Hyper inflation in Nigeria reached 34.8% in December 2024 and extending its rise after a brief moderation at the end of 2024.
Unfortunately, he observed that consumers are yet to see a corresponding reduction at the pump despite the fall in fuel price at the refinery to N890 per litre.
Many analysts see prices slowing this year, ushering a breather for both corporates and households that have had a tumultuous year with rising prices.
The Nigerian Economy reports that Price Waterhouse Coopers (PwC) has earlier predicted inflation easing to 26% due to stabilising of the naira 2025.
