Nigeria’s economy is projected to grow by 4.17% in 2025, driven by ongoing structural reforms and a gradual decline in inflation, Central Bank Governor Olayemi Cardoso announced on Thursday.
Speaking at a conference, Cardoso attributed the positive outlook to the reform agenda initiated by President Bola Tinubu in 2023. These reforms—most notably the removal of petrol subsidies and multiple currency devaluations—initially triggered sharp price increases, pushing inflation to 34.8%. However, Cardoso expressed confidence that inflationary pressures would ease as the benefits of the reforms begin to materialize.
“As the reforms take hold, we anticipate a steady decline in inflation and stronger macroeconomic stability,” he said.
Cardoso also noted that Nigeria’s foreign exchange reserves have surpassed $40 billion, supported by over $6 billion in FX inflows in 2024. This trend is expected to continue, with oil production forecast to reach 2.3 million barrels per day by mid-year, further boosting reserves.
Maintaining price stability and restoring market confidence remain the central bank’s top priorities, Cardoso emphasized. He outlined ongoing efforts to increase transparency and efficiency in the foreign exchange market.
“With reduced opportunities for FX arbitrage, we expect to see stronger interest in real sector development,” Cardoso added, signaling a shift toward sustainable economic growth beyond speculative currency trading.
