Emmanuel OchayiNigeria’s inflation rate is expected to remain high in 2025, according to a recent Reuters poll of 15 analysts.
The poll predicts that inflation will quicken to 29.1% this year from an average of 24.5% last year, before slowing to 17.2% next year. This is despite efforts by the Central Bank of Nigeria to tighten monetary policies.
Nigeria’s inflation rate hit a 28-year high of 33.2% in annual terms last month, largely due to flooding and insecurity in food-producing regions, which has driven up food prices. Food price inflation accounts for around 50% of the Consumer Price Index basket and is only marginally impacted by monetary policy.
“Inflation in Nigeria is expected to quicken to 29.1% this year…before it slows to 17.2% next year,” the poll noted. “Even with a more coherent monetary policy now in place, and potential naira stability, Nigerian inflation will only fall slowly this year.”
The poll also found that inflation in key African economies will slow into next year, with Ghana’s inflation expected to slow markedly to 18.7% this year and then to 12.1% in 2025. Angolan inflation is forecast to slow to 13.6% next year from 23.7% this year, while in Zambia it was seen slowing to 8.0% in 2025 from 12.3% this year.
Meanwhile, Kenya’s inflation will remain one of the most-tamed in the region, slowing to an average of 5.6% next year compared with 6.3% this year.
In a related development, the Nigeria Meteorological Agency (NIMET) has issued a crucial advisory to residents residing in wetlands and low-lying regions to relocate to higher ground to prevent the loss of lives and property due to predicted flash floods.
The FCT Emergency Management Department has also begun sensitization efforts and will barricade roads in flash flood areas to ensure the safety of lives and property.
“We have the climate predictions for 2024 by the Meteorological Agency and the National Flood Outlook, and it’s been predicted there will be flash floods around FCT…we engage in a lot of sensitization of the general public, especially those that are living within the river-bank areas, that they should immediately evacuate and go to higher ground,” said Mr. Mohammed Sabo, Acting Director-General of the FCT Emergency Management Department.
