The Nigerian economy is on track for a robust 4.17% growth in 2025, a significant improvement from the 3.36% recorded in 2024, according to the Central Bank of Nigeria (CBN). The 2025 Economic Outlook is predicated on ongoing government reforms, oil prices stabilisation amongst other factors.
This optimistic forecast was unveiled by Muhammad Abdullahi, Deputy Governor of the CBN’s Economic Policy Directorate, at the “National Economic Outlook: Implications for Businesses in 2025” conference in Lagos. Organised by the Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with B. Adedipe Associates Limited, the hybrid event brought together industry leaders to discuss the economic landscape.
Abdullahi attributed the projected growth to several key factors:
Ongoing Government Reforms: The government’s commitment to diversifying the economy away from oil dependence is a key driver. “Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment,” he emphasised.
Stabilising Oil Production and Prices: Increased domestic oil production and relatively stable global oil prices are expected to contribute significantly to economic growth.
Favourable Exchange Rate Environment: Maintaining a stable exchange rate will be crucial for sustaining this positive trajectory.
“We need effective teamwork between monetary and fiscal authorities, coupled with active private sector involvement, to achieve our 15% inflation target in 2025,” Abdullahi stressed.
He reiterated the CBN’s commitment to price stability and pledged to continue providing robust financial support to Small and Medium Enterprises (SMEs), a vital sector for economic development.
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The CBN’s growth prediction surpasses the International Monetary Fund’s forecast of 3.2% for 2025, highlighting the potential for even stronger economic performance.
CIBN President Pius Olanrewaju acknowledged the mixed economic performance of 2024 and emphasised the critical importance of this forum in identifying both the risks and opportunities that lie ahead. The event witnessed participation from prominent figures, including Kabir Katata from the Nigeria Deposit Insurance Corporation, Henrietta Onwuegbuzie from the Lagos Business School, and senior executives from various financial institutions.
