By Akinnodi Francis, Ondo

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A financial consultant, Dr. Emmanuel Adenegan, has stated that Nigeria’s 15% inflation rate target is achievable, provided the country’s exchange rate continues to stabilize.

Adenegan shared this insight during a recent discussion with The Hope in Ondo.

He explained that while Nigeria’s inflation rate is projected to decline to 25% nominally, the foreign exchange (FX) rate had the most significant impact on prices last year.

This statement came amidst varying opinions on the feasibility of achieving the inflation target, especially with the upcoming rebasing of the consumer price index (CPI) later this month.

Addressing skeptics, the financial expert said, “Many argued that a 15% inflation rate is unrealistic, and I understand their concerns. The average inflation rate for 2024 was 33%. If conditions remain as unfavorable in 2025 as they were in 2024, then nominally, inflation will likely settle at 25%.”

As a way forward, Adenegan emphasized addressing the key drivers of inflation.He noted, “If you examine the factors driving inflation in 2024, FX had the largest impact by far.

Inflation can only be curtailed from the fiscal side if new money isn’t injected into the economy.

If government spending is sourced from taxes, resource revenue, or borrowing—not from Central Bank financing—the inflationary impact will be minimized.”

Adenegan’s optimism came as Nigeria’s inflation rate rose to 34.80% in December, significantly affecting the cost of living for many citizens.