EIU Predicts Further Naira Depreciation and Rising Deficits for Nigeria Through 2024

The Economist Intelligence Unit (EIU) predicts the naira will depreciate to over N2,000 per dollar in 2024 before stabilizing.

The EIU forecasts Nigeria's government will raise Value Added Tax (VAT) to 15% from 7.5% to fund deficits and service debts.

The EIU says Nigeria's budget deficit could increase to 5% of GDP in 2024, above the legal limit of 3%.

The EIU predicts the naira will settle at N2,381 per dollar by end of 2024 after depreciating further from current levels.

The EIU expects Nigeria will continue borrowing externally to rebuild foreign reserves which will help stabilize the naira.