Nigeria economy shows inflation rate projects to decrease

TDF noted that despite current inflation rates, Nigeria’s economy was transitioning from a static model to a flourishing one, with implications for job and wealth creation.

The Democratic Front (TDF) has welcomed Fitch Ratings’ projection that Nigeria’s inflation rate would decrease from 33.7 per cent to 26.2 per cent by Q1 2025.The group, in a statement signed on Sunday in Abuja, by Malam Danjuma Mohammed, its Chairman, and Chief Wale Adedayo, Secretary, said the projection aligned with their own research, which considered various emerging economic variables.

TDF lauded President Bola Tinubu’s economic reforms, citing the withdrawal of oil subsidies and the unification of foreign exchange rates as key factors in the economy’s growth.

They highlighted Nigeria’s GDP growth to a 3.19 per cent year-on-year increase in Q2 2024.“Debt Service-to-Revenue Ratio decreased from 97 per cent to 68 per cent in Q2 2024.“Non-oil export receipts of 2.7 billion dollars in the first half of 2024, a 6.26 per cent increase from 2023, driven by an increase in the global demand for made-in-Nigeria products.“External reserves reached 39.07 billion dollars as of September 19.”

TDF noted that despite current inflation rates, Nigeria’s economy was transitioning from a static model to a flourishing one, with implications for job and wealth creation.

However, they acknowledged that insecurity and logistical constraints have crippled food supplies, triggering artificial inflation.The group commended President Tinubu’s efforts to address insecurity, including a 500 million dollar loan to launch a military offensive.

They expressed optimism that Nigeria’s food supply process would be restored, leading to a significant decrease in inflation rates.Overall, TDF sees Fitch Ratings’ report as an endorsement of President Tinubu’s economic reforms and a justification of the successes recorded so far.They emphasised the need to stay the course for a speedy realisation of Nigeria’s economic prosperity goals.