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Nigeria’s Inflation to Drop to 23% by 2025, Says IMF

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The International Monetary Fund (IMF) has made a new prediction about Nigeria’s inflation rate. In a report released this week, the IMF said Nigeria’s inflation will go down to 23% next year and then to 18% in 2026.

Daniel Leigh, who works at the IMF’s Research Department, explained the reasons for this prediction. He said Nigeria has made changes to its economy, including adjusting its exchange rate. These changes have caused inflation to rise to 33.2% in March.

However, Leigh believes the inflation rate will start to decrease. “We see inflation declining to 23 percent next year and then 18 percent in 2026,” he stated.

This new prediction is different from what the IMF said last year. Last year, the IMF had predicted Nigeria’s inflation would reach a new low of 15.5% in 2025. But now, the IMF is forecasting a higher rate of 23% for 2025.

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Leigh also talked about Nigeria’s economic growth. He said the country’s economy is expected to grow by 3.3% this year, up from 2.9% last year. This growth is because of improvements in the oil sector, better security, and advancements in agriculture.

Pierre Olivier Gourinchas, another IMF official, warned that global trade patterns are changing. While some countries may benefit from these changes, he said it could also reduce economic efficiency and make the global economy less stable.

Gourinchas emphasized that bringing down inflation should be a top priority for Nigeria. He said the country needs to carefully manage its monetary policies to achieve this goal.

Overall, the IMF is predicting Nigeria’s inflation will drop significantly in the next few years. However, the IMF also cautioned that global economic challenges could impact Nigeria’s progress. The country will need to carefully manage its policies to reach its inflation target.

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