Even as Nigeria’s Central Bank talks tough on stabilising the naira, the African Development Bank sees bumps ahead. In its 2025 Outlook, AfDB projects a 6% naira depreciation by 2026, despite signs that inflation may ease. For Nigerians living with rising prices and shrinking purchasing power, the mixed signals are hard to ignore.
The AfDB’s 2025 economic forecast offers cautious optimism: inflation may cool, though the naira could still weaken. Budget gaps remain a concern.
- AfDB forecasts Nigeria’s naira will fall by around 6% between 2025 and 2026.
- Inflation is projected to decline from 24.7% in 2025 to 17.3% in 2026.
- Ongoing reforms, high energy and food costs are key inflation drivers.
- Nigeria’s fiscal deficit is expected to remain high, at 4.2% of GDP.
- Nigeria commits $500m to the AfDB’s Trust Fund, reinforcing its regional leadership.
While the numbers signal potential relief for consumers, the road to economic stability remains steep and uneven.
