Nigeria’s economy is projected to grow by 3.5% year-on-year in 2025, up from an estimated 3.2% in 2024, according to the NESG-Stanbic IBTC Business Confidence Monitor. The report attributes this growth to easing inflationary pressures and 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, declining to 27.1% by December as high petrol costs normalize and the food supply improves. The growth projection could prompt 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 and 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.
Source: Nairametrics