The Digest:
The Central Bank of Nigeria has projected that the country's headline inflation will moderate to an average of 12.94% in 2026, driven by expected declines in the prices of fuel and food. The outlook, part of the bank's macroeconomic forecast, also anticipates economic growth of 4.49% for the year.
Key Points:
- The CBN attributes the projected growth to the continued impact of structural reforms and a gradual easing of monetary policy.
- The inflation forecast is based on declining costs of Premium Motor Spirit (petrol) and key food items.
- A recent price war in the downstream oil sector has already driven petrol prices down to between ₦739 and ₦910 per litre nationwide.
- Food inflation had already dropped to 11.08% as of November 2025, according to the National Bureau of Statistics.
- The apex bank's projection suggests a significant easing from the current inflationary pressures.
- The forecast assumes stability and continued positive trends in the domestic fuel market and agricultural output.
- This outlook provides a cautiously optimistic framework for economic planning in the coming year.
Sources: Central Bank of Nigeria, Daily Post Nigeria
