Nigeria’s Domestic Prices to Remain High in 2024/2025 Fiscal Year
The Central Bank of Nigeria (CBN) has issued a warning that domestic prices in Nigeria are expected to remain high in the 2024/2025 fiscal year. This forecast comes as the country experiences a positive recovery in its fiscal sector, contingent on the effective implementation of key economic reforms.
According to the CBN’s Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for fiscal years 2024/2025, elevated domestic prices are attributed to global supply constraints, exchange rate pass-through impact, and persisting security and infrastructural challenges. The CBN has also noted that these challenges could exacerbate inflationary pressures in the future.
Despite the ongoing economic challenges, the CBN remains optimistic about Nigeria’s fiscal outlook. The apex bank believes that the country’s performance in the 2024/2025 fiscal year will remain on a positive recovery trajectory, provided that the Finance Act 2023 and foreign exchange reforms are successfully implemented. Additionally, the CBN is calling for the restructuring of key revenue-generating MDAs to boost non-oil revenue and drive economic growth.
In recent months, Nigeria has experienced a decrease in inflation, with rates standing at 33.40 percent in July and 32.15 percent in August. However, the CBN is warning that the country’s domestic prices will remain high in the coming years due to ongoing global supply constraints and local challenges.
The CBN’s warning serves as a reminder of the ongoing economic challenges facing Nigeria, as the country continues to grapple with the effects of the global pandemic and domestic challenges. However, with a positive recovery in sight, the CBN remains optimistic about the country’s economic prospects, provided that key reforms are successfully implemented.
