The African Development Bank (AfDB) in its latest African Economic Outlook 2025 (AEO) projected that Nigeria was expected to record an average inflation of 24.7 per cent for 2025 before recording a significant decline to 17.3 per cent in 2026.
The report highlighted inflation as one of the most pressing challenges facing Nigeria’s economy in the short term, driven by exchange rate depreciation, high energy and food costs, and ongoing structural reforms.
Also, yesterday Nigeria approved a fresh $500 million replenishment of the Nigeria Trust Fund (NTF) at AfDB, extending the facility for another 15 years. President of the AfDB, Akinwumi Adesina, announced this during his opening remarks at the ongoing AfDB Annual Meetings in Abidjan, as he expressed appreciation to President Bola Ahmed Tinubu and Vice President Kashim Shettima for their continued support.
Also, the Secretary-General of the United Nations, António Guterres, praised Adesina, for his transformative leadership and unwavering commitment to Africa’s development over the past decade.
The AEO report also projected that monetary tightening, improved agricultural output, and easing global supply constraints could contribute to a notable drop in inflation by 2026.
