Nigeria: High Inflation, Weak Naira May Slow Down Economic Growth

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Nigeria: High Inflation, Weak Naira May Slow Down Economic Growth
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High inflation, naira weakness and policy tightening may threaten economic growth in the year 2024, the Chartered Institute of Taxation of Nigeria (CITN) has observed.

High inflation, naira weakness and policy tightening may threaten economic growth in the year 2024, the Chartered Institute of Taxation of Nigeria has observed.

Analysing the domestic economy, Agbeluyi noted that Nigeria was navigating through a blend of policy reforms introduced by the new administration in 2023. He said,"The Nigerian naira depreciated 51.6 per cent against the dollar which resulted in volatile exchange rates affecting the cost of imports, disrupting trade balances and contributing to economic uncertainty and heightened inflation which closed at 28.9 per cent in 2023, with food, energy and transportation costs being the most impacted.

"Improved oil production and an expected better harvest in the second half of the year are positive for 2024 GDP growth, which is projected to reach 3.2 per cent, although high inflation, naira weakness and policy tightening may cause constraints to growth."

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