The Central Bank of Nigeria (CBN) has projected that Nigeria’s gross domestic product (GDP) will grow by 4.17% in 2025, marking an optimistic outlook for the country’s economy.
This was disclosed by the Deputy Governor of the CBN’s Economic Policy Directorate Muhammad Abdullahi, during the 11th edition of the “National Economic Outlook: Implications for Businesses in 2025,” held in Lagos on Tuesday.
The event, which was a hybrid gathering, was organized by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Limited. Abdullahi explained that the economic forecast was bolstered by the successful implementation of ongoing fiscal and monetary reforms, which have started to yield positive results. This includes an increase in Nigeria’s GDP growth from 3.36% in 2024 to the anticipated 4.17% for the coming year.
According to Abdullahi, the country’s economic recovery is being propelled by several key factors, including stable crude oil prices, improvements in domestic oil production, and the government’s sustained reforms. He emphasized the importance of a stable exchange rate to maintaining this positive growth trajectory. Additionally, Abdullahi highlighted the CBN’s commitment to driving down inflation, with a target inflation rate of 15% by 2025. He stressed that achieving this goal would require effective collaboration between monetary and fiscal authorities, as well as active involvement from the private sector to foster a stable economic environment.
“The collaboration between monetary and fiscal policies, along with private sector participation, is crucial to sustaining a stable environment and meeting our inflation target,” Abdullahi said.
The CBN’s projection for 2025’s GDP growth is notably higher than the 3.2% forecast made by the International Monetary Fund (IMF), reflecting a more optimistic view of Nigeria’s economic prospects.
Abdullahi also addressed the government’s efforts to diversify its revenue base and reduce dependence on the volatile oil sector. He noted that the government’s tax reforms, which aim to broaden the tax base and improve collection efficiency, are vital for creating a more sustainable fiscal environment. While these reforms may pose short-term challenges, Abdullahi stressed that they are necessary for fostering a more resilient and diversified economy in the long term.
He encouraged businesses to adapt to these changes, which will ultimately strengthen Nigeria’s economic foundation. “The reforms are essential for building a more resilient and diversified economy that will support long-term growth,” Abdullahi remarked. He also noted that Nigeria’s abundant natural resources, coupled with the current administration’s focus on economic reforms, offer significant opportunities for innovation, investment, and sustainable growth.
Opportunities and Challenges for Businesses in 2025
Pius Olanrewaju, the president of CIBN, also spoke at the event, reflecting on the mixed economic landscape of 2024. Despite global and domestic economic challenges, Olanrewaju pointed to signs of gradual recovery, with Nigeria’s GDP showing resilience. Looking ahead to 2025, he emphasized the need for businesses to carefully examine the economic landscape, identifying both risks and opportunities, and strategize accordingly.
“This forum will help us identify the risks, harness the opportunities, and strategize for the future,” Olanrewaju said.
The event featured insights from various industry experts, including Kabir Katata, Director of Research, Policy, and International Relations at the Nigeria Deposit Insurance Corporation (NDIC), and Henrietta Onwuegbuzie from the Lagos Business School. Other notable participants included Akinsola Akeredolu-Ale, CEO of Lagos Commodities and Fixtures Exchange, Akeem Lawal, Managing Director of Interswitch (Purepay), and Chinwe Uzoho, Regional Managing Director for West and Central Africa at Network International.
The discussion underscored the importance of collaboration across sectors to drive Nigeria’s economic transformation and create a more robust, diversified economy in the face of both challenges and opportunities.
