International records / International Monetary Fund

Inflation in Nigeria: A Descriptive Analysis of Recent Developments

As a result of recent reforms, inflation persistence in Nigeria has declined and the economy's responsiveness to monetary policy actions is improving. Historically, inflation in Nigeria was driven by food prices, supply-side shocks, deficit financing, and episodes of pronounced exchange rate depreciation, especially in 2016 and after the 2023 unification of foreign exchange windows. These reforms are breaking the entrenched patterns of inflation, reducing the impact of past drivers and helping to stabilize price dynamics. What we’re seeing now is a gradual easing in the breadth of inflationary…