Nigeria Eases Rates to 27% as Oil Prices Hand Abuja a Fiscal Windfall

Nigeria’s central bank trimmed its policy rate to 27% amid easing inflation and a steadier naira, signalling a shift toward supporting credit. Higher global oil prices, driven by the Middle East conflict, offer Africa’s largest economy a fiscal windfall, though much of it may be absorbed by spending pressures. Growth ran near 4% in a recent quarter on services, but the public finances remain strained, with debt above 152 trillion naira and debt service consuming a large share of revenue. For the diaspora, the balance of windfall and vulnerability will shape the naira and remittance value.

Source: PwC West Africa Economic Outlook; Capital Economics.