Nigeria’s inflation rate would accelerate to 13 per cent at the end of 2018 due to increased money supply caused by political spending, the Financial Derivative Company has stated.
The country’s inflation rose to 11.23 per cent in August from 11.14 per cent the previous month.
In its analysis of the outcome of the Monetary Policy Committee’s (MPC) meeting on Tuesday, Financial Derivative Company said Nigeria’s foreign reserves would drop to $43 billion from the current over $44 billion.
It added that unemployment and underemployment exacerbate to 41 per cent as agricultural output in the Middle-Belt would also drop and the economy would berthed at 1.7 per cent at the end of 2018 from 1.50 per cent in the second quarter.
The company said minimum wage will increase to approximately N45,000. Labour unions have been requesting for government to raise minimum N65,000 and it commenced warning strike action on Thursday.
FDC reasoned that MTN illegal funds repatriation saga would be resolved amicably.