Fitch ratings forecasts drop in Nigeria’s inflation rate to 21.1% by 2024

Fitch Ratings has predicted that Nigeria’s inflation rate will decrease to 21.1 percent in 2024, compared to an average of 24.8 percent in 2023.

The global rating agency stated this in its latest report, which maintained Nigeria’s long-term foreign-currency issuer default outlook at ‘B’ with a stable outlook.

Fitch also projected a decrease of 5.62 percent in Nigeria’s inflation rate from 26.72 percent in September.

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

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

“We project a 1.1 percent of GDP rise in government revenue in 2023-2025, to 8.5 percent 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.