In response to growing pressures stemming from foreign exchange market fluctuations and the removal of fuel subsidies, KPMG has projected that Nigeria’s inflation could reach 30 percent by December 2023. This revelation was made in KPMG’s recent macroeconomic review for the first half of 2023, along with projections for the second half.
The report states, “Specifically, our model suggests that the combined influence of fuel subsidy removal and foreign exchange liberalisation may drive headline inflation to about 30 per cent by December 2023.”
Despite the Central Bank of Nigeria’s efforts to curb inflation by raising the Monetary Policy Rate (MPR) to 18.75 percent in June, inflation in the country has continued to rise, reaching 26.72 percent in September 2023. The National Bureau of Statistics is expected to release the inflation figure for October on November 15th.