Tinubu Forecasts Continued Inflation Decline in 2026, Highlights 2025 Economic Gains

President Bola Ahmed Tinubu has announced a commitment to further reduce Nigeria’s inflation rate in the coming year. In his New Year address, the President stated that the Federal Government is determined to ensure the benefits of ongoing economic reforms reach every Nigerian household. This pledge follows a period where inflation had already declined below a key government target.

2025: A Year of Economic Stabilization and Progress

Reflecting on the previous year, President Tinubu noted that Nigeria ended 2025 with tangible economic gains despite global headwinds. He reported that headline inflation moderated to 14.45% in November 2025, a significant slowdown from 16.05% in October. “Inflation declined steadily and reached below 15 per cent, in line with our target,” Tinubu said. He attributed this progress to sustained momentum on major reforms, including a fiscal reset that helped stabilize the economy.

The President outlined several key indicators from 2025, including robust quarterly GDP growth with annualized growth expected to exceed four percent. Nigeria maintained trade surpluses and achieved greater exchange rate stability. Notably, the Nigerian Stock Exchange posted a 48.12% gain for the year. Furthermore, foreign direct investment inflows saw a sharp rise to $720 million in the third quarter of 2025, up from $90 million in the preceding quarter, a trend affirmed by global credit rating agencies.

Building on a Foundation for Long-Term Prosperity

Tinubu emphasized that these achievements reaffirm the administration’s belief that its difficult but necessary reforms are moving the nation in the right direction. He highlighted that foreign reserves stood at $45.4 billion as of late December 2025, providing a substantial buffer for the naira. The President reiterated his administration’s commitment to fiscal discipline, referencing the recently presented 2026 Appropriation Bill. “Our administration has implemented critical reforms that are laying a solid foundation for long-term stability and prosperity,” he stated.

Looking ahead, the President’s central economic pledge for the new year is clear. “In 2026, we are determined to reduce inflation further,” Tinubu affirmed, connecting this goal directly to improving household welfare across the nation. This focus on moderating inflation and interest rates is positioned as the next step in a broader reform agenda aimed at delivering more concrete outcomes for ordinary citizens.