*Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, in a recent presentation at the Lagos Business School, opines the current relative stability of the Nigerian Naira, and 鈥榤ildly lower food and fuel prices鈥� should lower inflation rate to 33.1 percent in the First Quarter of 2025

Isola Moses | 绿帽献妻

As analysts reportedly have gleaned prices of goods and services slowing 2025, Mr. Bismarck Rewane, Managing Director of Financial Derivatives Company (FDC) Limited, Lagos, has also said that the recent relative stability of the Naira, Nigeria鈥檚 currency, and 鈥渕ildly lower food and fuel prices鈥� should lower inflation to 33.1 percent in the First Quarter (Q1) this year.

Rewane, who noted this in his presentation at Lagos Business School (LBS) Breakfast Session, titled: 鈥淣igeria in 2025: Breakthrough or Fall through鈥�, said the country鈥檚 38. 8 percent inflation figure is expected to drop in the months to March 2025, although modestly.

The expert stated: 鈥淚n Q1鈥�25, inflation is projected to ease marginally towards 33.1 percent, reflecting a stable Naira and fairly lower food and fuel prices.鈥�

The country鈥檚 high inflationary trend further soared to 34.8 percent December 2024, extending its rise after a brief moderation end-2024.

绿帽献妻 also gathered that in regard to small business credit schemes in the economy, several analysts see prices slowing this year, thereby ushering a breather for both businesses, corporate organisations, and households that have had a comparatively unstable year with increasing prices of products and services.

Rewane revealed that the price of petrol at the refinery has dropped to N890 per litre, adding that consumers are yet to see a corresponding reduction at the pump despite the fall.

The economist said the improvements seen so far on the stability of the Naira are 鈥済ood news鈥�.

Likewise, Dangote Petroleum Refinery and Petrochemicals Tuesday, February 11, 2025, also announced the company has reduced its cost of diesel product to N1,020 per litre, down from previous N1,075 per litre at the gantry price.

Dangote Refinery, which disclosed this in a statement Tuesday said the move was an effort at improving service to its customers and Nigerians in general.

The Dangote Petroleum Refinery also noted since it began diesel production January last year, the company has reduced the price of diesel over three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.

Rewane, however, observed that the economy over a month continued decline in external reserves, a situation which has shed $1.38 billion so far this year, reaching $39.49 billion as of February 5, 2025.

Small business credit schemes

Analysts equally said the depletion of the foreign reserves could be linked to the repayment of external obligations owed by the Federal Government and the Central Bank of Nigeria鈥檚 efforts to ensure liquidity in the market.

According to them, the Central Bank of Nigeria鈥檚 (CBN) measures, however, are yielding tangible results as the Naira appreciated to N1,565 last Friday on the street, gaining N5 against the Dollar, which traded at N1,570 the previous day.

Meanwhile, in the Nigerian Foreign Exchange Market (NFEM), the Naira remained stable, closing at N1,502.50 per dollar on Friday, almost unchanged from the previous day鈥檚 N1,502/$1, according to data from the CBN.

With its rate of appreciation, the Naira may be on course to reach levels, as projected by the Nigerian Economic Summit Group (NESG) at N1,300 per US Dollar on sustained reforms, report stated.

Kindly Share This Story