The Producers Affiliation of Nigeria (MAN) has projected that Nigeria’s headline inflation price will drop to 14% in 2026, pushed by a mixture of easing meals costs, secure vitality prices, and continued appreciation of the naira.
The Director of Analysis and Financial Coverage Division at MAN, Dr Oluwasegun Osidipe made the projections on Tuesday in Lagos at a press convention on the 2025 MAN Assume Tank Session.
He stated, “Headline Inflation will decelerate additional to 14 per cent, supported by easing meals costs, secure vitality costs and appreciation of the naira.”
MAN expressed optimism that the Central Bank of Nigeria (CBN) will maintain its disinflationary coverage measures, that are anticipated to create a extra secure macroeconomic setting conducive to progress and funding.
MAN initiatives MPR to cut back to 23%
MAN additionally forecasted that the benchmark rate of interest could be decreased to round 23% in 2026 as a part of the CBN’s efforts to stimulate credit score growth and enhance output progress.
Osidipe stated, “The Central Bank of Nigeria (CBN) is anticipated to implement additional cuts within the benchmark rate of interest to about 23 per cent, in keeping with dis-inflationary development and to stimulate credit score growth and output progress.
“Additional discount in lending charges and completion of the bank recapitalisation train will improve credit score availability to producers, strengthening funding and capability utilisation,” Osidipe stated.
The affiliation additionally projected additional strengthening of the naira. In line with Osidipe, “For producers, naira is projected to understand additional to N1,300–N1,400/$, pushed by international oil worth restoration, stronger exterior reserves, sturdy export earnings, elevated overseas investments and remittance inflows.”
New tax legal guidelines, “Nigeria First” coverage, others to drive progress
MAN hinged the anticipated positive aspects on efficient execution of recent tax legal guidelines’ incentives, operationalisation of the Nationwide Single Window Undertaking and purposeful implementation of Nigeria Industrial Coverage in shut alignment with the “Nigeria First” coverage framework.
Osidipe stated total GDP progress was anticipated to achieve 4 per cent in 2026 as a result of greater oil output and additional enchancment in fiscal house.
He added that growth within the monetary and manufacturing sectors, and heightened consumption throughout the election campaigns in This fall 2026, would additionally spur GDP progress.
What it is best to know
The CBN Financial Coverage Committee (MPC) had, in September, decreased the Financial Coverage Price (MPR) by 50 foundation factors, reducing it from 27.5% to 27%.
The choice was introduced by CBN Governor, Olayemi Cardoso, throughout the post-MPC press briefing on Tuesday, following the Committee’s 302nd assembly in Abuja.
Alongside the MPR lower, the MPC narrowed the uneven hall across the benchmark price to +250 and -250 foundation factors, from the earlier +500/-100 foundation factors.
Nigeria’s headline inflation price eased to 18.02% throughout the month, in accordance with the newest Shopper Value Index (CPI) knowledge launched by the Nationwide Bureau of Statistics (NBS).
Since March, inflation has been on a gentle decline nationwide. Nonetheless, whereas some states have benefited from this development, others proceed to wrestle with elevated residing prices.
Earlier, the Commonplace Bank projected that the Naira would shut at N1,473/$1 by December 2026.
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