Nigeria’s economic future in 2025 stands at a pivotal moment, poised between a breakthrough and a potential downturn. The latest insights from the LBS Breakfast Session, led by Bismarck Rewane, highlight key economic trends shaping the nation’s trajectory.
Economic Outlook: Stability or Struggle?
Nigeria’s macroeconomic indicators present a mixed picture. While GDP growth is expected to decline slightly to 3.6% in Q1 2025 due to post-festive spending reductions and an agricultural lull, inflation is projected to ease to 33.12%. The naira remains under pressure, but CBN interventions aim to stabilize it. Meanwhile, the stock market shows resilience, buoyed by investor optimism and stable interest rates.
Oil & Trade: A Double-Edged Sword
With crude oil production set to rise to 1.48 million barrels per day, Nigeria’s external reserves may see a boost. However, geopolitical uncertainties, including U.S.-China trade tensions, could impact global oil prices and trade balances. The U.S. remains one of Nigeria’s top trading partners, and fostering local production could help mitigate the effects of economic volatility.
Infrastructure & Energy: Roadblocks to Progress
The delayed execution of key infrastructure projects, including the Highway Development and Management Initiative (HDMI), continues to hinder economic expansion. Additionally, fuel and electricity price volatility has strained both businesses and households. Nigeria’s energy crisis, marked by frequent grid collapses, highlights the urgent need for policy reforms and investments in power infrastructure.
The Creative Economy: A Bright Spot Amidst Uncertainty
Nigeria’s creative industry is emerging as a global force, with artists like Tems winning Grammy awards and Nollywood setting revenue records. This sector, if well harnessed, could become a major economic driver, attracting foreign investments and generating employment.
As Nigeria navigates 2025, bold reforms, policy consistency, and infrastructural investments will determine whether it achieves a breakthrough or succumbs to further economic challenges.
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