Nigeria’s Gross Domestic Product (GDP) is expected to grow by 4.17% in 2025, with inflation rates forecasted to decline, as stated by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso.
Speaking at a recent conference, Cardoso outlined the positive economic projections, attributing them to ongoing reforms initiated by President Bola Tinubu’s administration.
Cardoso noted that while inflation currently sits at a high 34.80%, it is expected to ease as the government’s economic measures take effect. He explained that the reforms aim to stabilize key sectors of the economy and tackle challenges such as inflation and foreign exchange volatility.
The governor also shared positive developments regarding Nigeria’s foreign exchange reserves. He revealed that these reserves have been steadily increasing due to a rise in oil production. Nigeria’s oil output, which plays a significant role in the country’s revenue generation, is projected to hit 2.3 million barrels per day by mid-2025.
Additionally, Cardoso pledged to further strengthen the country’s foreign exchange reserves, aiming to exceed $40 billion in the coming years. This follows a $6 billion inflow recorded in 2024, which has bolstered the nation’s financial position.
“The Central Bank remains committed to maintaining price stability and restoring market confidence,” Cardoso said. He added that improving transparency and efficiency in the foreign exchange market is a top priority for the CBN.
He further noted that reducing opportunities for foreign exchange arbitrage would likely encourage investment in the real sector of the economy. “With limited opportunities for FX arbitrage, we expect that there will be more appetite for real sector development,” Cardoso remarked.
