The World Bank has described Nigeria’s target of achieving single-digit inflation in the near future as unrealistic, noting that the country remains among a handful of African nations still grappling with stubbornly high consumer prices.
In its latest Africa’s Pulse report released on Tuesday, the institution projected that Nigeria, alongside Angola, Ethiopia, Ghana, Malawi, Sudan, Zambia, São Tomé and Príncipe, and Zimbabwe, will continue to experience double-digit inflation through 2025.
While inflation is easing across much of the continent, the report noted that Nigeria’s price pressures persist due to currency depreciation, high food and energy costs, and supply bottlenecks. It added that 37 of Africa’s 47 economies are expected to maintain single-digit inflation by 2026 — a milestone Nigeria is unlikely to reach soon.
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This contrasts with the Federal Government’s optimism that ongoing reforms — including foreign exchange unification, fuel subsidy removal, and tighter monetary policies — would quickly curb inflation. Both Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso have maintained that achieving single-digit inflation remains a medium-term target.
However, the World Bank warned that rising prices continue to undermine household welfare and business confidence, unlike in countries such as Kenya, Ivory Coast, and Tanzania, which have managed to stabilise prices through stronger fiscal discipline and better foreign exchange management.
Andrew Dabalen, the World Bank’s Chief Economist for Africa, said Nigeria’s inflation problem is worsened by exchange rate volatility and structural supply constraints.
Despite these challenges, the report upgraded Nigeria’s growth forecast by 0.6 percentage points, citing recovering oil production and improved investment inflows. It urged African governments, including Nigeria’s, to prioritise reducing business costs and strengthening human capital to support sustainable job creation.