As Nigeria seeks to attract more investments and improve its business environment in 2025, achieving monetary and fiscal stability is considered essential. The country’s economic outlook highlights three main areas of focus: controlling inflation, boosting foreign exchange liquidity, and improving fiscal performance. Addressing these issues will contribute to creating a stable macroeconomic foundation, making Nigeria more appealing to both domestic and foreign businesses.
One of the key recommendations for controlling inflation involves a multi-faceted approach that includes tightening fiscal discipline and focusing on social programs. This approach aims to lower inflation while reducing economic uncertainty, thus making it easier for businesses to plan and expand operations. Achieving a stable and moderate inflation rate will provide businesses with a predictable environment to thrive.
Additionally, the outlook calls for efforts to improve the liquidity of foreign exchange and stabilize the exchange rate by streamlining trade processes and enhancing remittance inflows. The report also stresses the importance of boosting domestic revenue through progressive tax reforms and reducing debt vulnerabilities by leveraging non-debt financing, such as Public-Private Partnerships (PPP), to improve fiscal performance.
source: BUSINESS DAY