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Manufacturers see inflation dropping to 14% in 2026 as naira strengthens - THE SUN
As food and energy prices ease and the naira gains momentum against major currencies, the Manufacturers Association of Nigeria (MAN), is forecasting that Nigeria’s inflation rate could fall to 14% by 2026.
“Headline inflation will decelerate further to 14 per cent, supported by easing food prices, stable energy prices and appreciation of the naira,” Osidipe said.
He noted that the Central Bank of Nigeria (CBN) was likely to maintain a steady hand on disinflationary policies, ensuring a more stable environment for manufacturing and investment growth.
According to MAN’s projections, the CBN could lower the benchmark interest rate to around 23% in 2026 to further stimulate credit flow and boost production.
“The Central Bank of Nigeria (CBN) is anticipated to implement further cuts in the benchmark interest rate to about 23 per cent, in line with the disinflationary trend and to stimulate credit expansion and output growth,” Osidipe added.
He explained that lower lending rates and the completion of the ongoing bank recapitalisation exercise would “enhance credit availability to manufacturers, strengthen investment, and raise capacity utilisation.”
On the exchange rate outlook, MAN projected that the naira would appreciate to between N1,300 and N1,400 per dollar, buoyed by stronger foreign reserves, higher oil prices, increased remittances, and renewed investor confidence.
“For manufacturers, naira is projected to appreciate further to N1,300–N1,400/$, driven by global oil price recovery, stronger external reserves, robust export earnings, increased foreign investments and remittance inflows,” Osidipe added.
