Inflation is one of the biggest challenges facing Nigeria today, but Ayo Teriba, a respected economist and Chief Executive of Economic Associates, believes there’s hope. He recently shared on Arise Television’s Good Morning Show that Nigeria could lower its inflation rate to just 5% by 2025 if the government attracts $50 billion in foreign direct investment (FDI).

Teriba explained that such an investment would boost the naira, stabilize exchange rates, and strengthen the economy, creating a ripple effect that could significantly reduce inflation.

For this to happen, Teriba emphasized the importance of reforms. “5% inflation is possible next year,” he said. “If President Tinubu complements his tax and financial reforms with an investment act to attract $50 billion in FDI, we could see exchange rates stabilize and inflation drop to single digits.”

He pointed to Argentina as an example of how proactive measures can help a country escape high inflation and economic instability.

At the moment, Nigeria’s inflation rate is 34.60% (as of November 2024), while the official exchange rate stands at N1,540.45 per dollar. These figures are far from the government’s 2025 projections of 15% inflation and an exchange rate of N1,500 per dollar.

Teriba’s suggestion has sparked discussions about the importance of foreign investment in addressing Nigeria’s economic issues. While securing $50 billion in FDI is an ambitious goal, the potential benefits—including stronger currency, stabilized prices, and a healthier economy—make it a vision worth pursuing.

For Nigeria, the question remains: will the government take bold steps to attract the investments needed to transform the economy? The answer could define the country’s financial future in 2025 and beyond.