Nigeria’s inflation rate is expected to rise to 30% by December 2023, according to data-driven insights provider Stears. The pan-African inflation forecasts show that Nigeria’s annual inflation rate is expected to rise steadily until year-end, reaching around 30%, a level not reached since the country’s modern democratic era. Stears’ forecasts are based on econometric tools that consider various factors driving inflation. The exchange rate premium rose to 25.2% in September, a significant increase from August. The World Bank predicts that the removal of fuel subsidies and devaluation and unification of the exchange rate system will continue to increase inflationary pressure in Nigeria and erode the purchasing power of the average Nigerian. The country’s inflation rate is well above the World Bank’s projected rate of 25% for 2023.
