The Independent Media and Policy Initiative (IMPI) has projected that Nigeria’s headline inflation could fall to 17% by December 2025 following the Central Bank of Nigeria’s (CBN) decision to reduce the Monetary Policy Rate (MPR) to 27%.
In a statement issued by its Chairman, Dr. Omoniyi Akinsiju, the policy group said the cut marked the start of a monetary easing cycle expected to continue over the next three quarters.
It described the decision as well guided by economic data, including five consecutive months of declining inflation and a stronger naira.
IMPI noted that the move would lower borrowing costs for businesses, improve the operating environment, and gradually ease consumer prices.
According to the group, the reduction aligns with its earlier policy paper which projected that the CBN would cut interest rates in response to easing inflationary pressures.
The think tank maintained its forecast of 5% GDP growth in 2025, higher than the 3.4% projected by the IMF, citing policy consistency and reforms that have stabilised the economy.
IMPI urged authorities to sustain coordinated fiscal and monetary measures to consolidate gains, ensure price stability, and support stronger economic growth.
