The World Bank released projections on Monday, forecasting a decline in Nigeria’s inflation rate to 24.8 percent year-on-year in 2024.
This development follows the National Bureau of Statistics (NBS) reporting a current rate of 31.7 percent in February, up from 29.9 percent in January.
According to the report, inflation is expected to cool across most Sub-Saharan African economies but will remain relatively high. Median inflation in the region is anticipated to decrease from 7.1 percent in 2023 to 5.1 percent in 2024 and stabilize around 5 percent in 2025–26.
Factors contributing to this trend include the normalization of global supply chains, declining commodity prices, and the effects of monetary tightening and fiscal consolidation.
Despite the projected decrease, inflation rates in 2024 are still notably higher than pre-pandemic levels in many countries.
In Nigeria, for instance, the median inflation rate is expected to drop from 25.9 percent in 2023 to 24.8 percent in 2024. However, 14 countries in the region continue to experience persistently high inflation rates.
The report also reaffirms a projected economic growth rate of 3.3 percent for Nigeria in 2024, with a slight reduction to 3.6 percent for 2025–26.
It highlights the need for macroeconomic and fiscal reforms to stimulate growth, particularly in the non-oil sector, while structural reforms are deemed necessary to foster higher growth rates.
Food inflation and currency depreciation remain significant drivers of inflation across Sub-Saharan Africa, with about one-third of countries in the region experiencing double-digit year-on-year rates of food inflation by February 2024.
The report underscores the slow pace of poverty reduction in the region, with Nigeria and the Democratic Republic of Congo accounting for a significant portion of those living in extreme poverty.
To accelerate growth and poverty reduction, the World Bank emphasizes the importance of addressing structural inequality within the region.
