- The Central Bank of Nigeria says achieving the 15 per cent inflation target in 2025 requires effective monetary and fiscal authorities’ collaboration
- It projected that Nigeria’s Gross Domestic Product will grow to 4.17 per cent in 2025
- The CBN said the government is committed to diversifying the economy
The Central Bank of Nigeria (CBN) said achieving the Federal Government’s 15 per cent inflation target as contained in the 2025 budget will require effective collaboration between the monetary and fiscal authorities, as well as the private sector.
The Deputy Governor, Economic Policy Directorate of the CBN, Muhammad Abdullahi, stated this on Tuesday, January 21, during the 11th National Economic Outlook: Implications for Businesses in 2025, organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd in Lagos.
Abdullahi projected that the inflation rate, currently at 34.80 per cent, will decline following the outcomes of economic reforms.
He said, “Achieving the targeted inflation rate of 15 per cent in 2025 will require effective collaboration between monetary and fiscal authorities, alongside private sector participation for a stable economic environment.”
CBN predicts 4.17 per cent GDP growth in 2025
Abdullahi also noted that the Gross Domestic Product (GDP) is expected to grow by 4.17 per cent in 2025.
He said economic projections for 2025 remained optimistic, with fiscal and monetary reforms already paying off and the GDP anticipated to rise from 3.46 per cent recorded in 2024 to 4.17 per cent in 2025.
The CBN Deputy Governor said the projections are based on sustained implementation of government reforms, stable crude oil prices, improvements in domestic oil production, and anticipated stability of the foreign exchange market.
He further said the apex bank would prioritise price stability and strengthen the financial sector to support Small and Medium Enterprises (SMEs) and critical sectors for businesses to thrive.
Government committed to economic diversification
Additionally, Abdullahi said the government is committed to diversifying the economy and bolstering non-oil sectors to avoid dependence on the oil sector.
He said this informed the various policies introduced by the government, including the tax reform bills to broaden the tax base and improve collection efficiency.
Abdullahi said, “The government is making deliberate strides to diversify its revenue streams and reduce dependence on the volatile oil sector.
“Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment.
“While these reforms may present challenges in the short term, they are essential for building a more resilient and diversified economy in the long run.
“As businesses, it is crucial to adapt to these changes, understanding that they will ultimately strengthen the economic foundation for future growth.
“As we move forward on this path of exploration and collaboration, we must remain focused on the vast opportunities before us.
“Nigeria’s abundant resources, coupled with the current administration’s commitment to economic reform, offer a fertile ground for innovation, investment, and sustainable growth.”
Report projects inflation rate drop to 27.1% by December 2025
Meanwhile, TheRadar earlier reported that Nigeria’s inflation rate is projected to drop to 27.1 per cent by December 2025.
This is according to the NESG-Stanbic IBTC Business Confidence Monitor (BCM) report, which stated that inflationary pressures that were very pronounced in 2024 will gradually ease off in 2025.
