CPPE Projects Slight Moderation of Nigeria’s Inflation in 2025

The Centre for the Promotion of Private Enterprise (CPPE) has forecasted that Nigeria’s inflation may experience a slight moderation in 2025.

Muda Yusuf, the Executive Director of CPPE, shared this projection in a statement titled “Nigeria 2024 Economic Review and 2025 Economic Outlook.”

The CPPE noted that Nigeria’s inflation rate, which stood at 34.60 percent in November 2024, could ease as a result of reduced exchange rate volatility and a potential rebound of the Naira against the US dollar.

The report highlighted that global oil prices are expected to rise under President Donald Trump’s administration in the United States, which may further influence inflation trends.

“Inflation may moderate slightly due to the expected reduction in exchange rate volatility and a possible rebound of the Naira,” the CPPE stated. “Moderation in energy costs could occur as geopolitical tensions ease under Trump’s presidency, with a potential boost in global oil production as the USA increases output and the embargo on Russia is relaxed. These are likely outcomes under Trump’s leadership.”

The CPPE also cited the base effect of elevated inflation in 2024 as a contributing factor to the anticipated moderation.

However, the think tank cautioned that inflation may not be fully mitigated in 2025 due to several persistent challenges, including high energy costs, exchange rate fluctuations, transportation expenses, and other critical inflation drivers.

“Key drivers of inflation that may not dissipate entirely in 2025 include high energy costs, electricity tariffs, exchange rates, transportation costs, high interest rates, and high cargo clearing costs. Additionally, insecurity affecting agricultural output, climate change impacts such as flooding, imported inflation from geopolitical tensions, supply chain disruptions, trade wars, and tight global monetary conditions will continue to influence inflationary pressures,” CPPE concluded.

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