Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has asserted that achieving a 15 percent inflation rate in Nigeria is feasible, contingent upon the continued stabilization of the country’s exchange rate.
Oyedele made this statement during a panel discussion at the PwC Economic Outlook for 2025. He indicated that Nigeria’s inflation is projected to decrease to 25 percent nominally, emphasizing that foreign exchange fluctuations had the most significant impact on prices over the past year.
This statement comes amid differing opinions regarding the feasibility of this target, especially with the upcoming rebasing of the consumer price index (CPI) later this month.
In response to skepticism about the 15 percent target, Oyedele remarked, “People often claim that 15 percent is unattainable, and I understand their concerns. However, if we consider the average inflation rate for 2024, which stands at 33 percent, it is crucial to recognize that if conditions remain as challenging as they are.
To address Nigeria’s escalating inflation, he pointed out, “When examining the factors that drove inflation in 2024, foreign exchange was by far the most significant contributor.”
He added, “Inflation can only be curbed from the fiscal side by introducing new money. If the government’s expenditures are funded through taxes, resource revenues, and borrowing rather than from the central bank, the effect on inflation will be minimal.”
Oyedele’s hopeful outlook coincides with Nigeria’s inflation rate reaching 34.80 percent in December, which has significantly affected the cost of living for many Nigerians.
