Inflation to decline to 15.6% in 2026 – Report

According to a recent report by the International Monetary Fund (IMF), Nigeria's annual average inflation is expected to decline to 15.6% in 2026 and further ease to 14.7% in 2027. This significant reduction marks a noticeable deceleration from the high inflation rate of 23.0% recorded in 2025. Key stabilisation measures, such as enhanced exchange rate stability and increased domestic refining capacity, are playing a crucial role in moderating price pressures across supply chains.

However, the IMF cautions that persistent risks, including higher energy and fertiliser costs, as well as election-related spending, may slow the pace of disinflation. Despite these challenges, economic stability is crucial for turning macroeconomic progress into tangible improvements in daily living standards. The IMF also projects Nigeria's GDP to grow by 4.2% in 2026 and 4.3% in 2027, driven by foreign exchange reforms and robust performance in the non-oil sector.