Nigeria’s Economic Outlook: 5.5% Growth Possible with Right Policies, Says NESG
Report Warns of Lower Growth if Reforms are Reversed or Inefficiently Implemented
The Nigerian Economic Summit Group (NESG) has painted a positive picture of the nation’s economic outlook for 2025 with the potential to achieve a 5.5 percent GDP growth rate.
NESG, however, pointed out that this positive outlook was only possible provided the current reforms are sustained.
The projection was made at the launch of the 2025 Macroeconomic Outlook Report, titled ‘Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond’, which took place in Lagos on Thursday.
Dr Olusegun Omisakin, the Chief Economist and Director of Research and Development at NESG, stressed the importance of balancing price stability with the need for high and strong economic growth.
“We believe that at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential for the GDP to end up at 5.5 percent, and we believe that this is achievable,” he noted.
Omisakin also highlighted the need for increased collaboration to tame inflation, as well as sectorial reforms, particularly in agriculture, to optimize performance.
He noted that inefficient policy implementation could result in a much lower growth rate, of around 3.4 percent.
Omisakin warned that reversing current policies could lead to a growth rate of just 2.7 percent.
In terms of inflation, Omisakin predicted that it could be moderated to 24.7 percent by the end of the year.
He, however, warned that if the current path was continued, it could rise to 34 percent, leading to an extended stabilization period.
To achieve speedy GDP growth, Omisakin called for collaboration between monetary and fiscal authorities, alongside private sector participation.
He stressed the need to boost foreign exchange liquidity and stabilize the exchange rate.
The Chief Economist and Director of Research and Development also emphasized the importance of better fiscal performance.
“We believe so strongly that this must be the main focus of the government.
“If inflation is moderated, at the end of the year, it has a lot of benefits concerning all other macro indicators,” he said.
Overall, the NESG’s projection suggests that with sustained reforms and efficient policy implementation, Nigeria has the potential to achieve significant economic growth in 2025. (NAN)
