Read Time:1 Minute
The Institute of Macroeconomic and Policy Intelligence (IMPI) has revised Nigeria’s inflation outlook for December, lowering its forecast to 14 percent from the earlier estimate of 17 percent, citing improved monetary discipline and stabilizing market conditions.
In a statement released on Monday, IMPI said the downward revision reflects progress in curbing food and energy costs, alongside policy reforms aimed at moderating exchange rate volatility. The report suggests that recent government interventions, including improved coordination between fiscal and monetary authorities, are beginning to yield tangible results.
According to IMPI analysts, reduced inflationary pressure could enhance purchasing power, encourage investment, and set a stronger foundation for economic growth going into 2026. The group noted that inflation had averaged above 20 percent in previous years due to high import costs, fuel subsidy removal, and global commodity shocks.
The institute highlighted that sustained agricultural output, easing logistics costs, and improved access to foreign exchange have contributed to stabilizing consumer prices. However, it cautioned that risks remain, including potential disruptions from global oil price swings and domestic insecurity in food-producing regions.
Economic experts say the revised projection aligns with broader expectations that inflation will ease gradually as reforms take root. They also noted that a 14 percent inflation rate, while still high by global standards, would mark Nigeria’s lowest level in more than three years.
IMPI emphasized that keeping inflation in check will depend on continued policy coordination, prudent fiscal spending, and efficient management of foreign reserves. The agency urged policymakers to sustain reforms that strengthen local production and ensure consistent supply of essential goods.
The revised outlook offers cautious optimism for consumers and businesses, suggesting that price stability could return if current policy momentum is maintained through year-end.
In a statement released on Monday, IMPI said the downward revision reflects progress in curbing food and energy costs, alongside policy reforms aimed at moderating exchange rate volatility. The report suggests that recent government interventions, including improved coordination between fiscal and monetary authorities, are beginning to yield tangible results.
According to IMPI analysts, reduced inflationary pressure could enhance purchasing power, encourage investment, and set a stronger foundation for economic growth going into 2026. The group noted that inflation had averaged above 20 percent in previous years due to high import costs, fuel subsidy removal, and global commodity shocks.
The institute highlighted that sustained agricultural output, easing logistics costs, and improved access to foreign exchange have contributed to stabilizing consumer prices. However, it cautioned that risks remain, including potential disruptions from global oil price swings and domestic insecurity in food-producing regions.
Economic experts say the revised projection aligns with broader expectations that inflation will ease gradually as reforms take root. They also noted that a 14 percent inflation rate, while still high by global standards, would mark Nigeria’s lowest level in more than three years.
IMPI emphasized that keeping inflation in check will depend on continued policy coordination, prudent fiscal spending, and efficient management of foreign reserves. The agency urged policymakers to sustain reforms that strengthen local production and ensure consistent supply of essential goods.
The revised outlook offers cautious optimism for consumers and businesses, suggesting that price stability could return if current policy momentum is maintained through year-end.