The Central Bank of Nigeria (CBN) has projected a robust economic growth rate of 4.17 percent for 2025, surpassing the International Monetary Fund’s (IMF) forecast of 3.2 percent. This optimistic outlook was revealed by Muhammad Abdullahi, Deputy Governor of the CBN’s Economic Policy Directorate, during the ‘National Economic Outlook: Implications for Businesses in 2025’ conference in Lagos.
Abdullahi attributed the projected growth to several key factors. He stated that ongoing government reform aims to enhance efficiency, attract investment, and foster a more conducive business environment, while noting that consistent oil prices in the global market will provide a stable revenue stream for the Nigerian economy, supporting government spending and investment.
He added that increased domestic oil production will boost output and contribute significantly to economic growth.
Exchange Rate Stability and Inflation Control
Abdullahi emphasized the critical role of a stable exchange rate in maintaining the projected growth trajectory. He stated that the CBN would prioritize price stability and work towards achieving its inflation target of 15 percent in 2025.
“We need effective teamwork between monetary and fiscal authorities, plus private sector involvement, to reach our 15 percent inflation target in 2025,” Abdullahi said. He further highlighted the CBN’s commitment to strengthening financial support for small and medium enterprises (SMEs), a crucial sector for driving economic growth and job creation.
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Diversification of Revenue Sources
Abdullahi underscored the government’s efforts to reduce dependence on oil revenue. “Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment,” he stated. He urged businesses to adapt to these changes, recognizing that a diversified revenue base will contribute to long-term economic stability and growth.
Industry Leaders Convene
The ‘National Economic Outlook’ conference, organized by the Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with B. Adedipe Associates Limited, brought together key industry leaders to analyze the economic landscape and discuss potential challenges and opportunities.
CIBN President Pius Olanrewaju highlighted the importance of this forum in understanding the mixed economic performance of 2024 and identifying potential risks and opportunities for the year ahead. The event witnessed participation from prominent figures including Kabir Katata from the Nigeria Deposit Insurance Corporation, Henrietta Onwuegbuzie from the Lagos Business School, and executives from various financial institutions.
Looking Ahead
The CBN’s projection of a 4.17 percent economic growth rate for 2025 provides a glimmer of hope for the Nigerian economy. However, achieving this target will require sustained efforts from the government, the private sector, and all stakeholders.
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