Analysts Predict Temporary Easing of Inflation in April Amidst Economic Pressures
Economic analysts are cautiously optimistic that Nigeria could see some easing in inflation for April 2025, despite the lingering macroeconomic issues affecting both consumers and manufacturers. Rotimi Fakayejo, a financial analyst, noted that although fuel prices saw a minor increase post-Ramadan due to the Naira-for-Crude deal, food inflation actually slowed, offering some relief. He pointed out that no major economic shocks are expected this month, which could help stabilize price growth, though the overall environment remains fragile.
That said, Fakayejo also warned that manufacturers may continue to face challenges, including weaker demand and rising stockpiles of unsold goods. This is expected to hurt sales, even if revenue figures remain flat in the short term. He added that inflationary pressure isn’t disappearing completely, just temporarily easing, and this situation could be especially difficult for producers trying to manage costs while consumers cut back on spending.
Charles Sanni, CEO of Cowry Treasurers, echoed similar sentiments, emphasizing that Nigeria’s inflation problem is partly tied to global economic trends. He highlighted the depreciation of the naira and rising treasury bill rates as signals that the Central Bank of Nigeria (CBN) might be forced to adjust interest rates in the near future. While he doesn’t expect an immediate rate hike, he believes the next Monetary Policy Committee (MPC) meeting will be crucial in shaping the CBN’s response.
Meanwhile, recent data from the National Bureau of Statistics (NBS) confirmed that Nigeria’s headline inflation rose to 24.23% in March 2025, with a sharp month-on-month increase driven by rising food and energy prices. Urban areas were hit harder than rural ones, with states like Kaduna and Osun recording the highest inflation rates. As households struggle with the rising cost of essentials, analysts are urging the government to adopt more growth-oriented policies to prevent further economic strain and ensure long-term stability.
Source: Punch