PwC Predicts Inflation Drop to 26% in 2025 Amid Tighter Monetary Policies
Inflation in Nigeria is expected to decline to 26 per cent by 2025, driven by tighter monetary policies and improvements in foreign exchange stability, according to a report by professional services firm PwC.
The projection, published in Nigeria’s 2025 Budget and Economic Outlook on Thursday, contrasts with the federal government’s ambitious target of 15 per cent, as outlined in President Bola Tinubu’s 2025 Appropriation Bill presented to the National Assembly.
PwC 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.”
Foreign Exchange Stability and Growth Prospects
The exchange rate is expected to stabilise in 2025, bolstered by ongoing foreign exchange reforms implemented by the Central Bank of Nigeria (CBN). These measures are designed to increase foreign exchange inflows, providing a more predictable business environment.
At the Nigerian Economic Summit Group’s 2025 macroeconomic outlook launch, CBN Governor Olayemi Cardoso projected an even higher GDP growth of 4.1 per cent, highlighting the impact of monetary tightening and fiscal discipline on economic recovery.
Business Strategies for a Challenging Year
Amid these economic shifts, PwC has urged businesses to adopt new strategies to navigate the uncertainties of 2025. The firm outlined key approaches for resilience and growth:
Reinvent business models: Adapt to evolving market conditions by focusing on agility, customer engagement, and value-driven innovation.
Reignite market strategies: Leverage customer insights and differentiation tactics to remain competitive in a shifting economic landscape.
Rethink cost structures: Align spending with core business capabilities, investing in areas that drive competitive advantage while eliminating inefficiencies.
Reimagine technology adoption: Harness AI, digital transformation, and automation to enhance efficiency and customer experiences.
Redefine funding approaches: Optimise capital allocation and explore innovative financing solutions for sustainable expansion.
Re-evaluate talent strategy: Develop a future-ready workforce by upskilling employees, fostering innovation, and retaining top talent.
Strengthen stakeholder relationships: Build trust and transparency with regulators, customers, and strategic partners to enhance long-term stability.
As Nigeria braces for another year of economic reform, PwC’s outlook underscores the need for businesses to remain agile while policymakers work to rein in inflation, stabilise the naira, and foster sustainable growth.
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