Why Nigeria’s 15% inflation rate target possible—Oyedele

The Chairman of the Ptesidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has explained that Nigeria’s 15 percent inflation rate is possible provided the country’s exchange rate continues to stabilise.

Oyedele disclosed this recently in a panel session at the PwC economic outlook and 2025.

He noted that nominally, Nigeria’s inflation is expected to decline to 25 percent, stating that FX had the biggest effect on prices last year.

This comes against the backdrop of varying views that the target may not be feasible even after the consumer price index, CPI, rebasing later this month.

However, Oyedele said, “You say every time that 15 percent is not possible. And I do understand why they’re saying it’s not possible. If you look at the average inflation for 2024, it’s 33 percent. If things remain as bad as they were in 2024, in 2025, nominally, inflation will be 25 percent.”

As a solution to stop Nigeria’s rising inflation, he noted, “if you look at the factors that pushed inflation in 2024, FX passed through the biggest factor by a mile.

“I think that you only stop inflation from the fiscal side if you inject new money. If the money that the government is spending is from taxes, is from resource revenue, and is from borrowing, not from the central bank, then the impact on inflation is limited”.

Oyedele’s optimism comes as Nigeria’s December inflation rose to 34.80 percent, impacting the cost of living for the majority of Nigerians.