Daud Olatunji
Nigeria’s economy is set for a modest recovery in 2025, driven by six pivotal sectors: agriculture, oil and gas, consumer goods, industrial goods, banking, and telecommunications.
This projection is contained in Afrinvest’s “Nigeria Economic and Financial Market Review of 2024 and 2025 Outlook,” which highlights the potential of these sectors to catalyze growth amidst stabilizing inflation and improved global demand.
According to the report titled “Beyond the Rhetorics: Transforming Reforms to Tangibles,” the implementation of critical tax reforms could unlock N7.5 billion annually, providing a lifeline to Nigeria’s fiscal sustainability.
The reforms are deemed essential, particularly as the national debt-to-GDP ratio surged to N138 trillion and 58.3 percent in 2024, up from N97.3 trillion and 40.1 percent in 2023.
The agriculture sector is poised for a remarkable year, buoyed by strategic investments from 2024, increased domestic and regional demand, and federal government interventions, including tariff waivers for equipment imports.
Despite anticipated moderation in global energy prices, the oil and gas sector remains a key driver.
Afrinvest predicts a strong performance spurred by improved foreign exchange balance sheets and heightened corporate activities.
A recapitalization exercise within the banking sector is expected to bolster Nigeria’s $1 trillion economy ambition by 2030. The spillover effects include wealth creation, job opportunities, and increased foreign investment.
The industrial goods sector is also set for growth, supported by moderating inflation and stable foreign exchange conditions. Federal infrastructure investments will further enhance business performance.
The consumer goods sector faces a cautiously optimistic outlook, with inflationary pressures, foreign exchange volatility, and geographical challenges impacting consumer spending.
Similarly, the telecommunications sector will grapple with foreign exchange pressures affecting operational costs.
However, Afrinvest foresees strategic adjustments such as renegotiated tower lease agreements and revised tariffs in early 2025 helping to offset these challenges.
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