Navigating Economic Challenges in 2025: Opportunities and Risks for Nigerian Businesses

 An economic expert, Dr Biodun Adedipe, says Nigeria needs to shore up its production capacity to bridge the gaps in the economy.

Adedipe, the Founder, of BAA Consult, asserted the Nigerian-British Chamber of Commerce (NBCC) 2025 Economic Outlook on Thursday in Lagos.

He noted that the fundamental problems of developing countries such as Nigeria have been reduced to food, energy, and manufacturing deficits.

Adedipe said the presence of these deficits signified that the country was not producing enough.

He, however, projected that there were promising movements in dealing with food and manufacturing deficits.

Adedipe said the nation’s business environment would be interesting if the energy deficit got firmly on the reform train.

“Agricultural value chains are a winner and it is important to focus more on the drivers.

“We must also focus on manufacturing for local consumption with attention on volume and not the margin while looking into productivity enhancers.

“Unfortunately, most policymakers and analysts focus on the symptoms and effects of these deficiencies rather than bridging the gaps,” he said.

The economist said the reforms the country had undergone such as fuel subsidy removal, banks’ recapitalization, fiscal consolidation, unified exchange rate, and tax reforms were inevitable.

He, however, noted that some fiscal challenges such as high debt service-to-revenue ratio, low revenue, and high inflation, among others strain the country’s economic dynamics.

He said that in 2025, key growth drivers for the Nigerian economy included the growing population, rapid urbanization, deepening internet penetration, treasury bills, and others.

Adedipe added that in 2025, economic reforms would begin to pay off while inflation would likely reach an inflection point early in the year.

“So far, the Central Bank of Nigeria has demonstrated capacity and willingness to intervene in the foreign exchange market.

“Rebasing of the Gross Domestic Product and inflation should enhance these macroeconomic indices, making the Nigerian economy more attractive to stakeholders,” he said.

Mr Ray Atelly, President, of NBCC, said the event was designed to provide businesses, industry leaders, and policymakers with the critical insights to navigate the evolving economic landscape.

Atelly said in an era of rapid change, understanding the forces shaping the global and local economy was more essential than ever.

He said in 2025, as the world undergoes significant economic transformations, businesses must stay ahead of emerging trends and potential disruptions.

He noted that key areas of focus would include shifts in international trade dynamics, evolving regulatory policies, technological advancements, and geopolitical influences.

“All of which play a pivotal role in shaping market conditions and business strategies.

“With innovations such as artificial intelligence, digital finance, and green energy reshaping industries, organizations must adapt to remain competitive.

“Additionally, fluctuations in supply chains, interest rates, and consumer behaviors add layers of complexity that require informed decision-making.

“The 2025 economic outlook will empower stakeholders to proactively identify opportunities, mitigate risks, and chart a sustainable path for growth in an increasingly interconnected and uncertain world,” he said.NAN