World Bank Forecasts High Inflation Rate for Nigeria in 2024



The World Bank has projected that Nigeria's inflation rate will remain high at 24.8 percent year-on-year in 2024. The bank also reaffirmed its economic growth projection for Nigeria at 3.3 percent in 2024, with a slight reduction to 3.6 percent for the years 2025 to 2026. This adjustment is down by 0.1 percentage points from the previous projection.


According to the World Bank's Africa's Pulse Report for April 2024, released on Monday, April 8, Nigeria's economic growth is expected to gradually improve as macroeconomic and fiscal reforms take effect. The report highlights the need for structural reforms to foster higher growth, especially in the non-oil sector.


The report also notes that average inflation in Nigeria is expected to ease gradually to 15.1 percent by 2026, supported by monetary policy tightening and exchange rate stabilization. However, food inflation remains a concern, with several Sub-Saharan African countries experiencing double-digit year-on-year rates, including Nigeria.


The report underscores the challenges of high extreme poverty, inequality, and low transmission of growth to poverty reduction in the region. It highlights Nigeria and the Democratic Republic of Congo as accounting for one-third of those living in extreme poverty in Africa.

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