Nigeria’s economy is projected to achieve a 5.5 per cent gross domestic growth rate in 2025, contingent on effective reforms, according to Olusegun Omisakin, chief economist of the Nigerian Economic Summit Group (NESG).
President Bola Tinubu emphasised that ongoing economic reforms are yielding positive results, aiming for macroeconomic stability and improved living conditions for citizens.
Key strategies include controlling inflation, enhancing foreign exchange liquidity, and optimising fiscal performance.
However, some analysts caution that without substantial policy implementation, growth could fall to as low as 3.4 per cent.
Omisakin projected that Nigeria’s economy could achieve a 5.5 per cent gross domestic growth rate in 2025 if efficient reforms are implemented.
Omisakin said this during the NESG 2025 Macroeconomic Outlook Launch held on Thursday, emphasising the importance of targeted measures to unlock the country’s economic potential.
According to him, achieving this growth rate hinges on three key strategies. First, he highlighted the need to control inflation, noting that the current inflationary trend is spiraling out of control.
He said controlling inflation must go beyond what the monetary authority can address or what the fiscal authority can achieve through expansionary spending.
He stressed the importance of critical sectoral reforms, particularly in agriculture, stating, “There is no way inflation can be moderated without considering the agricultural sector.”
Second, Omisakin emphasised the need to boost foreign exchange (FX) liquidity and stabilise the exchange rate, which is critical for fostering investor confidence and economic stability.
Lastly, he called for optimising fiscal performance, including prudent government spending and improving revenue generation to reduce fiscal deficits.
However, Omisakin warned that Nigeria’s current trajectory, marked by inefficient policy implementation and significant economic constraints, could result in a much lower growth rate.
He projected a possible growth rate of 3.4 per cent if the status quo remains. Additionally, he cautioned that a reversal of some of the initial policy reforms could see growth plummet further to 2.7 per cent.