Victor Ezeja
AdminThe chief executive officer (CEO) of Financial Derivatives Ltd, Bismarck Rewane has projected a drop in Nigeria’s inflation rate by next year, adding that this will trigger a concomitant appreciation in the value of the Naira to the Dollar.
Speaking during the Parthian Partners 2024 economic outlook session in Lagos, the renowned economist asserted that the country’s inflation rate is likely to “drop in 2024 and could go as low as 17 per cent in 2025”.
“Base effects are expected to kick in by mid-year, with inflation moderating to an average of 23.6 per cent in 2024 from an average of 24.4 per cent in 2023. The decline in inflation will naturally lead to exchange rate appreciation,” he said.
Prime Business Africa recalls that the inflation rate recently hit 28.2 per cent on its way to attaining the 30 per cent rate which KPMG earlier forecast for the country by December 2023. The record high inflation rate for November is a return to an era witnessed in 2005.
Speaking on economic trends in 2023, Rewane noted that the Naira fell by 26 per cent to N1,050/$ in 2023.
“There were higher energy prices with diesel price up by 34.01 per cent to N1,050 per litre (year-on-year), fuel price up by 233 per cent to N630 per litre (year-on-year), while money supply growth went up 36 per cent (year-on-year) to N67.18trn in September,” he said.
Meanwhile, the Financial Derivatives boss pointed out that investment in Nigeria is a substantial contributor to the country’s gross domestic product (GDP).
Speaking on the interrelated structure of the global economy, he said Nigeria has a number of international issues that could influence the trajectory of the economy in 2024.
This, according to him, encompasses geopolitical events, trade dynamics, rising market trends, and artificial intelligence.
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