Experts forecast Nigeria’s economy to grow by 3.5% year-on-year in 2025, a slight improvement from the estimated 3.2% in 2024, according to the NESG-Stanbic IBTC Business Confidence Monitor report. The growth projection is attributed to easing inflationary pressures expected in the second half of 2024 and the stabilization of key government policies such as foreign exchange liberalization and fuel subsidy removal. These factors are predicted to enhance consumer spending and improve business activities, setting the stage for economic recovery.
The report anticipates average inflation to hover around 30.5% in 2025 but decline to 27.1% by December. Key drivers include increased foreign exchange stability, reduced fiscal deficits, and steady food supply chains. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria may adopt an accommodative monetary stance by late 2025 as inflationary pressures ease. This policy shift is expected to boost credit access and lower borrowing costs, providing further support for economic growth.
Despite initial disruptions, reforms like FX liberalization and fuel subsidy removal are described as foundational to a more sustainable economic framework. By addressing structural inefficiencies and bolstering investor confidence, these measures aim to solidify Nigeria’s economic fundamentals, ensuring a more resilient growth trajectory in the coming years