The Central Bank of Nigeria (CBN) has projected that domestic prices in Nigeria will remain elevated throughout the 2024/2025 fiscal year. This was disclosed in the bank’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the upcoming fiscal period.

The CBN’s announcement follows consecutive drops in the country’s inflation rate in July and August, which recorded 33.40% and 32.15%, respectively.

According to the CBN, the continued rise in domestic prices is largely due to global supply chain disruptions, exchange rate fluctuations, as well as ongoing security and infrastructural challenges in the country.

Despite these concerns, the CBN maintains a positive fiscal outlook for Nigeria, attributing it to the successful execution of the Finance Act 2023, ongoing foreign exchange reforms, and the restructuring of key revenue-generating Ministries, Departments, and Agencies (MDAs) to boost non-oil revenue.

The bank emphasized that “Domestic prices are expected to remain elevated through 2024/2025, driven by spillovers from global supply constraints and exchange rate pass-through. Security and infrastructural challenges may further intensify inflationary pressures.”

However, it noted that the fiscal sector is likely to experience a positive recovery in 2024/2025, provided that the Finance Act 2023 and restructuring of revenue-generating MDAs are effectively implemented.