“Stable Naira and Better Food Supply Could Ease Inflation Pressure, Analyst Says”

An economic expert has said that Nigeria could see a significant reduction in inflation in 2026 if the country’s currency stabilises and agricultural output increases.

The analyst noted that sustained stability in the foreign exchange market — with the naira holding firm against the dollar — combined with better security in farming regions to boost food supply, would help slow price growth nationwide.

She explained that recent changes in how inflation is measured have created statistical effects, but the overall trend still points to a slowing rise in prices. A stronger naira, potentially around ₦1,300 to the dollar in an optimistic scenario, would support this downward trend.

However, risks remain, including ongoing insecurity in key agricultural areas, which could disrupt farming and keep food prices high. In such a scenario, inflation might stay higher than hoped.

Monetary authorities are reportedly taking a cautious approach to interest rates, waiting to see how adjusted inflation figures influence economic policy.