Fitch projects Nigeria’s inflation moderating to 21% in 2024

Fitch Ratings has projected that Nigeria’s inflation rate will moderate to 21.1 per cent in 2024 from an average of 24.8 per cent in 2023.

The global rating firm disclosed this in its recent report, which affirmed Nigeria’s long-term foreign-currency issuer default outlook at a ‘B’ stable outlook.

According to the firm, Nigeria’s inflation, a significant economic indicator, would decrease by 5.62 from 26.72 per cent in the September rate.

“Fitch projects inflation moderates to 21.1 per cent in 2024 from an average 24.8 per cent in 2023, helped by lower deficit monetisation, but well above the ‘B’ medians of 6.0 per cent and 4.9 per respectively,” the report said.

Similarly, Fitch projected a 1.1 per cent Gross Domestic Product rise in government revenue between 2023 and 2025 to 8.5 per cent GDP.

“We project a 1.1 per cent of GDP rise in government revenue in 2023-2025, to 8.5 per cent of GDP, helped by increased government efforts to mobilise non-oil tax revenue (including establishing a presidential fiscal and tax reform committee), but this remains one of the lowest ratios of any Fitch-rated sovereign,” it said.

It added that Nigeria’s budget deficit/GDP will narrow to 5.0 per cent and 4.6 in 2024 and 2025.

“This underpins our forecast for the budget deficit/GDP to narrow to 5.0 per cent and 4.6 per cent in 2024 and 2025,” it added.

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