The World Bank, on Monday, released projections indicating a significant drop in Nigeria’s inflation rate to 24.8 percent year-on-year (YoY) in 2024.
This revelation follows recent data from the Nigerian Bureau of Statistics (NBS), which reported a current inflation rate of 31.7 percent in February, up from 29.9 percent recorded in January.
“Inflation is cooling in most Sub-Saharan African economies but remains high,” the World Bank stated. “The median inflation in the region is projected to fall from 7.1 per cent in 2023 to 5.1 per cent in 2024 and 5 per cent in 2025–26.”
The report highlighted various factors contributing to this decline, including the normalization of global supply chains, a steady decline in commodity prices, and the effects of monetary tightening and fiscal consolidation.
While acknowledging the reduction in inflation across most African countries compared to 2023, the report emphasized that it remains high compared to pre-pandemic levels.
It noted that 14 countries in the region still experience persistently high levels of inflation, with a median inflation rate dropping modestly from 25.9 percent in 2023 to 24.8 percent in 2024.
The World Bank also reaffirmed its projection of 3.3 percent economic growth for Nigeria in 2024, with a slight adjustment in the projections for 2025 to 2026. It stressed the importance of macroeconomic and fiscal reforms in driving sustainable growth, particularly in the non-oil sector.
Continuing, the report highlighted the challenges of poverty reduction in the region. It stated that the speed of poverty reduction has decreased significantly since 2014, with Nigeria and the Democratic Republic of Congo accounting for a significant portion of those living in extreme poverty.
To address these challenges, the World Bank noted the need to tackle structural inequality, stating that the region can accelerate growth and poverty reduction substantially by addressing this issue.
