Nigeria’s central bank is optimistic about the country’s economic growth, forecasting a 4.17% expansion in 2025. Governor Olayemi Cardoso attributes this growth to ongoing reforms and stabilizing inflation.
The reforms, instituted by President Bola Tinubu in 2023, include the removal of petrol subsidies and a twice-devalued naira currency, which initially fueled inflation.
Inflation, currently at 34.8%, is expected to decline as the reforms start yielding results.
The central bank also anticipates a gradual increase in foreign exchange reserves, driven by increased oil production.
Oil output is projected to reach 2.3 million barrels per day by mid-year, while foreign exchange inflows exceeded $6 billion in 2024, taking Nigeria’s foreign exchange reserves to over $40 billion.
The central bank’s priority remains maintaining price stability and bolstering market confidence.
To achieve this, the bank aims to enhance transparency and efficiency within the foreign exchange market.
With limited opportunities for foreign exchange arbitrage, the bank expects more investment in real sector development, driving growth and economic expansion.
