Professional services firm PwC has projected that inflation in Nigeria will drop to 26 per cent in 2025 due to tighter monetary policies.
This was revealed in Nigeria’s 2025 Budget and Economic Outlook published on Thursday.
The 2025 Appropriation Bill presented by President Bola Tinubu at the National Assembly projected that inflation will drop to 15 per cent this year.
PwC, in its outlook, stated, “Inflation is forecasted to decrease to about 26 per cent in 2025, driven by tighter monetary policies, improvements in Nigeria’s foreign exchange dynamics, and baseline effects. Nigeria’s GDP is projected to grow by 3.3 per cent in 2025, supported by sustained policy reforms. However, growth prospects may be constrained by persistent economic pressures.
“The exchange rate is anticipated to stabilise in 2025, supported by ongoing foreign exchange reforms by the Central Bank of Nigeria, which are expected to boost foreign exchange inflows.”
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, at the Nigerian Economic Summit Group 2025 macroeconomic outlook launch, disclosed a projected GDP growth of 4.1 per cent in 2025.
PwC also called for businesses to adopt new strategies to meet the challenges of the year.
Some of the strategies include: “Reinvent your business model: Adapt your business model to new economic realities, focusing on agility, customer-centricity, and value creation in evolving markets. Reignite your market play: Revitalise your go-to-market strategies by leveraging customer insights, enhancing competitive differentiation, and exploring untapped growth opportunities.
“Rethink costs through core capabilities: Optimise costs strategically by aligning spending with core capabilities, investing in areas that drive competitive advantage, and eliminating non-value-adding expenses. Reimagine your tech, digital, and AI play: Harness emerging technologies, advanced digital platforms, and AI-driven solutions to innovate processes, enhance customer experiences, and drive efficiency.
“Redefine your funding and capital strategy: Reevaluate your funding approach to ensure resilience, explore innovative financing options, and optimise capital allocation for sustainable growth.
“Re-evaluate your talent strategy: Align your workforce with future needs by building critical skills, fostering a culture of innovation, and retaining top talent through targeted development and engagement strategies, and reassess your stakeholder relationships: Strengthen engagement with regulators, customers, social media audiences, and strategic partners by fostering trust, transparency, and collaborative value creation.”