Nigeria’s Central Bank Projects 4.17% GDP Growth in 2025, Inflation to Ease

Nigeria’s Central Bank expects the economy to grow by 4.17% in 2025, driven by ongoing reforms and stabilising inflation, Governor Olayemi Cardoso stated on Thursday January 23.

These reforms, introduced by President Bola Tinubu in 2023, include the removal of petrol subsidies and two devaluations of the naira, measures that have contributed to rising inflation in Africa’s most populous nation. Currently, inflation stands at 34.8%, but Cardoso anticipates a decline as the impact of these reforms begins to materialise.

Cardoso also highlighted that foreign exchange reserves are expected to increase gradually, supported by higher oil production. Oil output is projected to reach 2.3 million barrels per day by mid-year, he added. In 2024, Nigeria recorded foreign exchange inflows exceeding $6 billion, which boosted the country’s foreign exchange reserves to over $40 billion.

The central bank’s primary focus remains ensuring price stability and strengthening market confidence. To achieve this, Cardoso emphasised the importance of enhancing transparency and efficiency in the foreign exchange market. “With limited opportunities for FX arbitrage, we expect increased appetite for real sector development,” he concluded.