Fitch Says Nigeria’s Inflation to Reach 27.5% by Year End

Emmanuel Addeh in Abuja

Nigeria’s inflation will shoot to 27.5 per cent by the end of 2023, following the impact of the economic reforms embarked upon by the Bola Tinubu-led administration, a report released by a Fitch Group’s Unit, Business Monitor International (BMI), has said.

BMI Research provides macroeconomic, industry and financial market analysis, covering 29 industries and 200 global markets and in 2014 was acquired by Fitch Group. The report was released at the weekend.

The prediction made in its ‘Sub-Saharan Africa Monthly Outlook’ covering the month of August,  tracking key developments in West Africa is seen as largely conservative, since the National Bureau of Statistics (NBS) August data showed Nigeria had already hit 25.8 per cent.

However, in the report which also included the political risk assessment of the region, the Fitch unit noted that while the rising inflation will pressure the government into ramping up spending to cushion Nigerians from the rising inflation, it will fall short of demands outlined by trade unions.

The labour unions have now given notice that they will embark on an indefinite strike on October 3. On Sunday morning , Tinubu said, among others, that he will release funding in the sum of N35,000 each for each low level worker.