Nigeria Not A Hyperinflationary Economy, Says Financial Reporting Council

The Financial Reporting Council of Nigeria FRC has declared that the country does not qualify as a hyperinflationary economy under the criteria outlined by IAS 29: Financial Reporting in Hyperinflationary Economies .

According to a statement by Dr Rabiu Olowo, the FRCs Executive Secretary/CEO, while IAS 29 provides guidance for financial reporting in hyperinflationary conditions, it does not explicitly define when hyperinflation occurs but lists indicators such as a preference for non-monetary assets, pricing in foreign currencies, and a cumulative three-year inflation rate nearing or exceeding 100.

The Council noted that Nigeria does not exhibit these conditions. "There is no indication that the general population prefers to keep its wealth in non-monetary assets or any other relatively stable foreign currency," the statement read.

It further emphasised that Nigerians continue to transact in local currency and invest in Naira-denominated assets, showing confidence in the local economy.

FRC cited data from the Central Bank of Nigeria CBN and financial institutions, showing a rise in investments in monetary assets such as treasury bills, mutual funds, and fixed deposits over the last three years.