CBN forecasts 4.17% GDP growth in 2025

The Central Bank of Nigeria (CBN) says the 2025 economic indices indicate a positive outlook, with the nation’s Gross Domestic Product (GDP) expected to accelerate to 4.17 per cent for faster economic growth.

The CBN Deputy Governor, Economic Policy Directorate, Muhammad Abdullahi, said this at the 11th edition of the ‘National Economic Outlook: Implications for Businesses in 2025’ in Lagos on Tuesday, January 21, 2025.

The event was organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Limited.

Abdullahi said Nigeria’s 2025 economic projections remained optimistic with fiscal and monetary reforms already paying off, resulting in the GDP anticipated rise from 3.36 per cent recorded in 2024.

According to him, the growth is anchored on sustained implementation of government reforms, stable crude oil prices, and improvements in domestic oil production.

Abdullahi also stated that stability in the exchange rate would play a crucial role in maintaining the positive trajectory, with the inflation rate projected to decline due to the impact of economic reforms.

“Achieving the targeted inflation rate of 15 per cent in 2025 will require effective collaboration between monetary and fiscal authorities, alongside private sector participation for a stable economic environment,” the CBN Deputy Governor said.

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The keynote speaker said the CBN would prioritise price stability and strengthen the financial sector to support SMEs and critical sectors for businesses to thrive.

Abdullahi noted that the nation’s evolving policy landscape presented both challenges and opportunities for businesses to thrive.

He added: “The government is making deliberate strides to diversify its revenue streams and reduce dependence on the volatile oil sector.

“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.

“While these reforms may present challenges in the short term, they are essential for building a more resilient and diversified economy in the long run.

“As businesses, it is crucial to adapt to these changes, understanding that they will ultimately strengthen the economic foundation for future growth.

“As we move forward on this path of exploration and collaboration, we must remain focused on the vast opportunities before us.

“Nigeria’s abundant resources, coupled with the current administration’s commitment to economic reform, offer a fertile ground for innovation, investment, and sustainable growth.”

Others at the event were the CEO of Lagos Commodities and Fixtures Exchange, Akinsola Akeredolu-Ale; the Managing Director of Interswitch (Pure pay), Akeem Lawal; and the Regional Managing Director of West and Central Africa Network International, Chinwe Uzoho; among others.

The Star