NESG projects 5.5% real GDP growth in 2025
Nigerian Economic Summit Group (NESG) has projected 5.5 per cent real Gross Domestic Product Growth (GDP) in 2025 aimed the implementation of effective stabilisation measures.
The 5.5 per cent projection in real GDP is higher than the CBN’s 4.17 per cent for this year.
The non-governmental & non-profit organization in a report titled: “2025 Macroeconomic Outlook Report” stated that these efforts aim to alleviate cross-sectoral constraints while addressing sector-specific challenges.
“Stabilisation reform initiatives are expected to enable broad-based sectoral growth in the short term, departing from sectoral growth experienced in 2024 (Q1-Q3) where only four of the 20 major economic sectors, achieved growth rates exceeding five per cent, while also addressing underlying structural issues.
“Key drivers, such as enhanced electricity supply and improved fuel availability- resulting in lower fuel prices—anticipated to significantly reduce business disruptions, particularly for Nano, Micro, Small and Medum Enterprises (NMEMEs), thereby boosting productivity and overall economic performance.
“Additional, improved foreign exchange availability will sustain operations in the manufacturing sector, which depends on imported raw and intermediate inputs in agriculture, addressing financing storage, warehousing and logistics challenges will bolster sectoral performance.
“The oil & gas sector will remain critical not just for growth but also as a significant contributor to foreign exchange inflows, external balance resilience, and government revenue.
“Furthermore, the manufacturing sector is projected to expand due to stabilisation policies that address power supply challenges and reduce input costs,” it added.
NESG projected a decline in inflation rate to 24.7 per cent in 2025, signalling an improvement in the country’s macroeconomic stability.
The firm in a report attributed the decline to effective coordination of fiscal policies by the Federal Government with monetary policy measure by CBN, stressing that these policies would drive this anticipated reduction in the inflation rate this year.
The 24.7 per cent projection in inflation ratee is below the CBN 25 per cent for this year and 15 per cent by the Federal Government.
NESG added that a relatively stable foreign xchange market, resulted to improved foreign exchange supply and reduced speculative demand, and it is expected to play a pivotal role in curbing inflation this year.
“The anticipated enhanced productivity dynamics across key economic sectors, particularly Agriculture, are expected to contribute significantly to the projected ease in inflationary pressure in 2025.
“Increased agricultural output will improve food supply, address scarcity, and ease food price pressures, which constitute significant driver of inflation in Nigeria. Additionally, improved security in major food-producing regions will ensure better across to farmlands and supply-chains, further stabilising food prices,” NESG added.
