Experts are projecting that Nigeria's economy will grow by 3.5% year-on-year in 2025, surpassing an estimated 3.2% growth in 2024, according to the NESG-Stanbic IBTC Business Confidence Monitor. The report attributes this growth to the easing of inflationary pressures and the stabilizing effects of the government's two flagship reforms: foreign exchange liberalization and fuel subsidy removal.
Inflation is expected to average 30.5% in 2025, decreasing to 27.1% by December as high petrol costs normalize and the food supply improves. This growth projection could encourage the Central Bank of Nigeria's Monetary Policy Committee to adopt an accommodative stance, enhancing credit access and reducing borrowing costs.
The report's authors argue that while the reforms were initially disruptive, they are now laying the groundwork for a sustainable economic recovery, bolstering investor confidence and fiscal stability. They also emphasize that continued stability in exchange rates and fiscal policies will be key to sustaining growth momentum in the coming years.
Context:
Amid global economic instability, Nigeria is taking strategic steps to strengthen its economic base and attract investment. The reforms undertaken are already beginning to bear fruit, contributing to economic recovery and setting the stage for long-term growth and progress.
