Ghana, Nigeria Face Inflation Risks Amid Global Trade War - Deloitte

The ongoing global trade war is casting a shadow over West Africa's economic powerhouses, Ghana and Nigeria, with Deloitte West Africa warning that trade tensions could spark higher oil prices, disrupt supply chains, and drive up inflation in both countries.

The report warns that new US tariffs could spark a surge in imported inflation in Ghana, leading to higher local consumer prices and reigniting inflationary pressures.

“New US tariffs will spur imported inflation and increase local consumer prices, reigniting inflationary pressure,'' the report said.

According to Deloitte, a rise in global inflation could put additional pressure on the naira, driven by strong demand for foreign exchange and potential capital flight in Nigeria.

 “....will increase pressure on the naira, driven by persistent forex demand and potential capital flight”.

Despite these risks, both countries may benefit from lower global crude oil prices, which could lead to a decline in domestic fuel prices. Ghana's inflation rate has already shown signs of slowing, with the rate declining to 22.40% in March 2025, down from 23.10% in February 2025.

However, the decline in inflation hasn't yet led to lower prices for consumers, and Deloitte warns that the current trend may not continue if global economic conditions change. As a result, policymakers in Ghana and Nigeria will need to tread carefully to mitigate the risks and capitalize on opportunities in the shifting global economic landscape.

Source: Lead News Online