- As Nigeria begins 2025, key issues from last year are expected to shape the year ahead, influencing the nation’s growth and stability
- The implementation of the national budget will be closely watched for its economic implications
- From the energy sector to tax policy and national politics, TheRadar compiled eight key events expected to continue influencing Nigeria in 2025
Heading into 2025 with many key issues from the previous year, important trends and ongoing issues are expected to continue influencing the nation’s development.
The energy sector is set to be a major focal point, while tax reforms are expected to reshape the country’s fiscal policies.
Rivers State politics remains entangled in drama, and the implementation of the national budget will be closely watched. Additionally, major infrastructure projects like the Calabar coastal highway will continue to be of public interest.
8 issues to determine Nigeria’s progress in 2025
TheRadar has compiled eight key events that are expected to continue shaping the year below:
1. Lagos-Calabar coastal road project
One key event to watch in 2025 is the progress of the Lagos-Calabar Coastal Road project, a major infrastructure initiative aimed at enhancing connectivity and driving economic growth.
The project, which led to the demolition of Landmark Resort, spans over 700 kilometres and is designed to link Lagos, Nigeria's economic centre, with Calabar, a key port city near the Cameroonian border.
Minister of Works Dave Umahi announced that the first section of the highway is expected to be completed by May 29, 2025. He also revealed that tolls will be introduced for 5 to 10 years to recoup construction costs.
However, the project’s omission from the 2025 federal government’s proposed budget has raised speculation and questions about its future.
2. Controversial tax reforms
A significant development from 2024 that will continue to draw attention in 2025 is the presentation of the controversial tax reform bills, which aimed to improve fiscal governance, overhaul public revenue structures, and stimulate economic growth in Nigeria.
The bills aim to support businesses and benefit individuals, particularly low-income earners. Key proposals included exempting minimum wage earners from personal income tax and reducing the tax burden on over 90 per cent of Nigerian workers.
However, it faced opposition from northern leaders, who argued that the reforms were biased against the region and could undermine national unity and welfare.
In response, the federal government rejected these accusations, stating that the proposed reforms were intended to promote national development and ensure fiscal sustainability for all regions of Nigeria.
3. Nigeria’s national grid
The power sector in Nigeria remains a critical area of focus as the country enters 2025. With the ongoing challenges, particularly with the national grid, efforts to enhance power generation and improve transmission infrastructure are expected to intensify this year.
In 2024, the country’s power transmission and distribution systems faced significant issues, with the national grid experiencing incessant collapses throughout the year.
Experts have noted that these challenges if left unchecked, could hamper the country’s economic growth and development in the long term.
However, there is hope for improvement as the government continues their efforts to provide more stable electricity access for Nigerians.
4. NNPCL’s refinery reopenings
Following significant developments in the nation's oil sector, the Nigerian National Petroleum Company Limited (NNPCL) is a key player to watch in 2025.
At the close of 2024, the company made headlines with the unexpected restart of its Port Harcourt refinery. Building on this momentum, NNPCL announced in late December that the Warri Refining and Petrochemical Company (WRPC) had also resumed operations.
The company also revealed plans to fast-track repairs on the Kaduna Refinery and the second Port Harcourt refinery, which holds a capacity of 150,000 barrels per day. These efforts are central to NNPCL’s strategy to fortify Nigeria’s position as a prominent player in the global energy market.
Industry experts predicted that the full deregulation of the oil sector and the revival of local refining will yield significant benefits for the country.
With increased domestic production and reduced reliance on imported petroleum products, Nigeria is poised to attract more investment in its downstream sector, generate job opportunities, and drive industrial growth.
5. Dangote refinery
A report from CardinalStone predicted that the 650,000-barrel-per-day refinery would help bring more stability to the nation’s economy, especially by improving the exchange rate and making conditions better for manufacturers.
The multi-billion-dollar project is expected to play a major role in improving Nigeria’s manufacturing sector, which has been struggling due to several economic challenges.
The report suggested that the refinery’s impact on the exchange rate could lead to more stability in the value of the naira. This, in turn, might encourage the Central Bank of Nigeria to lower interest rates, making it easier for businesses to access credit.
Lower borrowing costs would be a big help to manufacturers, many of whom have faced high interest rates and limited access to loans in the past.
6. Tinubu's 2025 Appropriation Bill
Another key development to watch in 2025 is the realisation of President Bola Tinubu's 2025 Appropriation Bill, which was presented to the 10th National Assembly on Wednesday, December 18.
During the presentation, the president provided a detailed breakdown of the proposed 49.7 trillion naira budget, outlining allocations for various sectors of the economy.
President Tinubu emphasised that the 2025 budget aimed to reduce inflation from 34.6 per cent to 15 per cent and improve the exchange rate from approximately 1,700 naira per US dollar to 1,500 naira. He also projected an increase in crude oil production to 2.06 million barrels per day (mbpd).
Despite these optimistic projections, experts have raised concerns, arguing that some of the figures in the budget proposal appear unrealistic.
7. Rivers politics saga
Another key event is the political crisis in Rivers State, which serves as a major centre for Nigeria’s oil and gas industry and a key part of the country’s marine economy.
The power tussle began when some lawmakers loyal to the Federal Capital Territory (FCT) Minister, Nyesom Wike, began impeachment proceedings against Governor Siminalayi Fubara.
This conflict between Fubara and his predecessor, Wike, who was also his former political mentor, has divided the 31-member state assembly into two rival groups.
Tony Okocha, the factional chairman of the All Progressives Congress (APC) in Rivers State, expressed doubts about a quick resolution. He blamed Governor Fubara for not trying to make peace during Wike’s recent birthday, which he believes could have helped ease tensions.
8. Abuja demolitions
According to Nyesom Wike, the Federal Capital Territory (FCT) Minister, property demolitions in Abuja will continue in 2025.
Despite public backlash, Wike has vowed to press ahead with the controversial exercise, insisting it is part of his governance duties.
When asked if the ongoing demolition and the enforcement of ground rent regulations could become a major distraction in 2025, Wike firmly responded that nothing would deter him from focusing.
“Nothing distracts me. I am very focused,” he said, acknowledging that complaints were inevitable. “Even if people are complaining, it is part of governance.
“You don’t expect that you will superintend over the affairs of people, and then you satisfy everybody. People must complain, but I can tell you such complaints cannot distract us. I am very focused, and since it is part of our job, we will continue to do what is necessary,” Wike stated.
2024 Review of Nigerian Politics: 15 most controversial events of the year
Meanwhile, TheRadar earlier reported that 2024 was a turbulent year in Nigerian politics, with Yahaya Bello, Kano emirs and Tinubu's government dominating the headlines.
TheRadar compiled 15 key events that sparked debates and divided public opinion across Nigeria.