Experts have projected that Nigeria’s economy will experience growth in 2025, despite the challenges faced in 2024. At the Nigeria Economic Outlook 2025 organized by FirstBank, Olusegun Alebiosu, CEO of FirstBank Group, highlighted that improving government revenues and fiscal positions, along with an increase in foreign reserves to over $40 billion, signal optimism for the year ahead.
Alebiosu also pointed to signs of recovery, including stability in the foreign exchange market and the reactivation of key refineries, which could drive growth. Experts project a GDP growth rate of 3.68% for 2025, marking a positive trajectory.
Growth in Energy Sector
Ugodre Obi-Chukwu, CEO of Nairametrics, identified the energy sector as a major driver of growth, particularly with the increased adoption of renewable energy products, including solar power. He emphasized that the shift toward energy efficiency and sustainability will create numerous business opportunities, particularly in renewable energy adoption.
Strategic Economic Outlook
Bismarck Rewane, CEO of Financial Derivatives Company, suggested that 2025 will differentiate between strategic and reactive thinkers. While he expects gradual economic growth, he predicted that inflation will remain high, forecasting it to range between 25% and 27% rather than the government’s target of 15%.
Challenges and Outlook
The removal of fuel subsidies has led to higher petrol prices and food inflation, contributing to economic hardship. Despite these challenges, the International Monetary Fund (IMF) projects a 3.2% growth rate for Nigeria in 2025, with inflation expected to fall to 25%.
The country’s economy has shown resilience, with a steady growth trend in recent years, driven primarily by the services sector and industrial growth.