Abuja: Nigeria’s economy is forecasted to witness a positive shift as Fitch Ratings projects a decrease in the country’s inflation rate from 33.7 percent to 26.2 percent by the first quarter of 2025. The Democratic Front (TDF) has expressed support for this projection, highlighting it as consistent with their own research.
According to News Agency of Nigeria, TDF released a statement signed by its Chairman, Malam Danjuma Mohammed, and Secretary, Chief Wale Adedayo, applauding President Bola Tinubu’s economic reforms. The group attributes key factors such as the withdrawal of oil subsidies and the unification of foreign exchange rates to the projected economic growth. TDF further emphasized Nigeria’s GDP growth, noting a 3.19 percent Year-on-Year increase in Q2 2024.
The statement also pointed out a reduction in the Debt Service-to-Revenue Ratio from 97 percent to 68 percent in the same period. Additionally, non-oil export receipts amounted to 2.7 billion dollars in the first half of 2024, marking a 6.26 per
cent increase from 2023, driven by rising global demand for Nigerian-made products. External reserves have also seen improvement, reaching 39.07 billion dollars as of September 19.
Despite the current inflation rates, TDF believes that Nigeria’s economy is transitioning from a static model to a more dynamic one with the potential for job and wealth creation. However, the group acknowledged challenges such as insecurity and logistical constraints that have led to artificial inflation by disrupting food supplies.
TDF commended President Tinubu’s initiatives to address these issues, including securing a 500 million dollar loan to launch a military offensive aimed at curbing insecurity. They expressed optimism that restoring the food supply process would significantly reduce inflation rates.
Overall, TDF views Fitch Ratings’ report as an endorsement of President Tinubu’s economic reforms and validation of the progress achieved thus far. They stressed the importance of maintaining the current course to swiftly
realize Nigeria’s economic prosperity goals.