Nigeria’s Economy Expected to Grow by 3.5% in 2025
The NESG-Stanbic IBTC Business Confidence Monitor has projected Nigeria’s economy to grow by 3.5% year-on-year in 2025, an increase from the estimated 3.2% in 2024. This growth is attributed to easing inflationary pressures and the stabilizing effects of two key government reforms – foreign exchange liberalization and fuel subsidy removal.
Inflation is forecasted to average 30.5% in 2025, with a decline to 27.1% by December as petrol costs normalize and food supply improves. The growth projection may lead the Central Bank of Nigeria’s Monetary Policy Committee to adopt an accommodative stance, facilitating increased credit access and reduced borrowing costs.
The report’s authors highlight that while the reforms initially caused disruption, they are now laying the foundation for a sustainable economic recovery. These reforms are also enhancing investor confidence and promoting fiscal stability. The importance of maintaining stability in exchange rates and fiscal policies is emphasized as crucial for sustaining growth momentum in the years ahead.
Sources: Nairametrics
