Stears, a leading economic analysis and data-driven insights provider has unveiled its much-anticipated 2024 African Outlook Report, shedding light on Nigeria’s macroeconomic landscape. The report reveals that Nigeria is grappling with a formidable challenge in the form of a high headline inflation rate, currently at 28.2%%.
Stears projects an average annual inflation rate ranging from 27.59% to 31.85% for 2024, signalling the need for proactive measures to safeguard the nation’s economic stability. The report anticipates that the Central Bank of Nigeria (CBN) will persist with its tightening policy in the near term to address the inflationary pressures effectively. Immediate action on dollar illiquidity is deemed crucial for achieving comprehensive inflation management. The report underscores the importance of strategic interventions to enhance liquidity and stabilise the exchange rate.
“The elimination of petrol subsidies has significantly heightened the cost of living for consumers. The resultant surge in fuel prices has set off a chain reaction, escalating transportation expenses and contributing to an overall uptick in inflation,” stated Dumebi Oluwole, Senior Economist at Stears.
“This, coupled with the devaluation of the naira, has led to elevated import costs, particularly in the context of persistent foreign exchange scarcity. The shortage of foreign exchange has precipitated higher exchange rates, adversely affecting businesses reliant on imported goods and services. The cumulative effect is complicating the economic landscape, adding layers to the challenges faced by both consumers and businesses.” she added.
In the longer term, Stears emphasises the imperative for a holistic approach, calling for sustained efforts in addressing structural challenges that contribute to inflationary pressures. The report highlights the need for collaborative initiatives between the government, regulatory bodies, and private sectors to foster sustainable economic growth.
“We understand the complexity of the economic landscape in Nigeria, and our 2024 African Outlook Report aims to provide valuable insights to policymakers, investors, and businesses navigating these challenging times,” said Fadekemi Abiru, Head of Insights at Stears. “Our projections and recommendations are rooted in a thorough analysis of the current economic conditions, and we believe that a combination of short-term measures and long-term strategies will be instrumental in steering Nigeria towards a path of resilience and growth,” she added.
Download the free executive summary here: https://bit.ly/48tqfWa
