LAGOS, Jan 23 – Nigeria’s Central Bank Governor, Olayemi Cardoso, has announced an optimistic economic outlook for 2025, projecting a GDP growth of 4.17%. Speaking at a conference on Thursday, Jan 23, 2025; Cardoso attributed the anticipated expansion to ongoing reforms and stabilizing inflation in Africa’s most populous nation.
Reforms implemented by President Bola Tinubu’s administration in 2023, including the removal of petrol subsidies and the devaluation of the naira currency, initially stoked inflation. However, Cardoso expressed confidence that these measures would soon begin to bear fruit, reducing the current inflation rate of 34.8%.
Rising Foreign Exchange Reserves and Oil Output Cardoso also highlighted a gradual increase in Nigeria’s foreign exchange reserves, which exceeded $40 billion in 2024, fueled by foreign inflows of more than $6 billion. The central bank expects further growth, driven by a forecasted rise in oil production to 2.3 million barrels per day by mid-2025.
Focus on Price Stability and Market Confidence The Central Bank’s primary goals remain maintaining price stability and bolstering market confidence. Cardoso outlined plans to enhance transparency and efficiency within Nigeria’s foreign exchange market, minimizing opportunities for arbitrage while encouraging investment in the real sector.
“With limited opportunities for FX arbitrage, we expect greater appetite for real sector development,” he added, emphasizing the bank’s commitment to long-term economic stability and growth.
As Nigeria navigates these transformative reforms, all eyes are on how effectively the measures will curb inflation and stimulate sustainable economic development in 2025.
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