Proshare’s latest report shows that Nigeria’s foreign reserves must reach $60 billion to control inflation and meet the Central Bank of Nigeria’s (CBN) target of 21%. The “Economic Outlook Report 2025: Unlocking Nigeria’s Economic Prosperity” warns that inflation will remain high, particularly in the first two quarters of 2025, unless reserves grow significantly.
The report notes that even $60 billion is below the preferred range of $80 billion to $120 billion. It stresses that without increased foreign reserves, inflation will persist, regardless of the CBN’s rate hikes.
The economists stress that boosting foreign reserves would ease inflation, support the private sector, and improve credit access. It would also reduce borrowing costs and foster job creation. The government should sell idle public assets to boost reserves and ease debt pressure.
The report urges the government to rethink outdated policies and adopt new strategies. It emphasizes the need for coordinated action and a clear policy framework to drive economic growth. It also calls for maximizing Nigeria’s intellectual property and improving trade positioning to boost prosperity.
In conclusion, Proshare stresses that Nigeria must adopt fresh thinking and precise actions to unlock economic growth in 2025.