Positive Outlook for Nigeria in 2025-Economist
An economic expert, Dr Biodun Adedipe, says Nigeria’s economic indices for the year 2025 shows a positive outlook, with reforms beginning to pay off, leading to faster economic growth.
Adedipe, also founder, BAA Consult, said this at the Lagos Chamber of Commerce and Industry (LCCI) 2025 Economic Review and Outlook Conference on Thursday in Lagos.
The annual gathering is a platform to reflect on the past year’s economic performance, assess ongoing policy reforms, and strategise for the future.
The economist projected that inflation would reach an inflection point in the early part of 2025, causing a potential downward trajectory of the country’s Monetary Policy Rate.
He added that tightening by the Central Bank of Nigeria, effects of tax reforms if implemented and supply-side bottleneck issues tamed should result in a reduction in inflation rate.
He said the fundamental problems of developing countries had been reduced to: food, energy and manufacturing deficit, hence the need for Nigeria to produce enough.
Adedipe, however, noted that there were promising movements in dealing with food and manufacturing deficits.
He said should the country’s energy deficit gets firmly on the reform train, the Nigerian business environment should become profitable.
“What to do in 2025 include focusing more on agricultural value chains and manufacturing more for local consumption.
“Nigeria must look into productivity enhancers such as education, health and digital services.“Businesses must embrace strategic partnerships across industries and geographies,” he said.
Mr Gabriel Idahosa, President, LCCI, described 2024 as a pivotal for Nigeria noting that it was marked by significant reforms across fiscal policy, energy, and trade.
Idahosa, represented by Deputy President, Mr Leye Kupoluyi, said the country’s structural economic challenges necessitated the reforms.
He noted that the Gross Domestic Product (GDP) growth rate for the third quarter of 2024 closed at 3.46 per cent, the most since fourth quarter of 2023 and quickening from 3.19 per cent in the previous quarter.
Idahosa added that in 2023, Nigeria’s tax-to-GDP ratio was 10.6 per cent and lower than the World Bank and International Monetary Fund recommend a tax-to-GDP ratio of at least 15 and 12 per cent respectively.
“The current administration has set a target of 18 per cent by 2025, necessitating the comprehensive Tax Reform Bills before the National Assembly.
“At forums like this, we must begin to analyse the expected rebasing of our GDP and Consumer Price Index.
“With the new figures expected after the rebasing, we urge government to remain focused on driving through the economic reforms towards achieving set goals.
“While the path to Nigeria’s economic transformation is not easy, deliberate policies outlined in the 2025 federal budget and the structural reforms of 2024 provide a roadmap for inclusive and sustainable growth,” he said. #Positive Outlook for Nigeria in 2025-Economist#
