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Financial Experts Upbeat About Nigeria’s Economic Recovery, Forecasts 26% Inflation
![Financial Experts Upbeat About Nigeria’s Economic Recovery, Forecasts 26% Inflation](https://global.ariseplay.com/amg/www.thisdaylive.com/uploads/Taiwo-Oyedele-1.jpeg)
Esther Oluku
Some financial experts have restated their fate in the Nigerian economy, saying Nigerian economy is certainly on the path of recovery.
Reaffirming his fate in the Nigerian economy, the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, stated that based on the on-going fiscal, monetary and trade policy reforms, Nigeria is on the path of recovery.
Meanwhile, two PwC Partners. Messrs Olusegun Zaccheaus, and Kenneth Erikume, who shared Oyedele’a optimism about the Nigerian economy however, highlighted key factors expected to shape Nigeria’s industrial development in the medium term.
Oyedele, while fielding questions during a panel session at the ‘Executive Roundtable on Nigeria’s 2025 Budget and Economic Outlook’ put together by PwC in conjunction with BusinessDay Media, opined that the year 2025 will deliver greater economic dividends to all Nigerians.
While acknowledging the effects of Nigeria’s economic reforms on the population, he stated that the tougher days are over.
Attributing some of the factors leading to the skyrocketing of the nation’s baseline inflation to 34 per cent in December last year to Foreign Exchange instability and increase in prices of petroleum products upon removal of subsidy, he noted that these factors are not going to be present in 2025 and as such there will be no upward inflationary push.
He opined inflation will most likely rest on the basely effect of around 25 per cent seeing that from the fiscal side, the government was not minting and injecting new money into the economy. As such, the possibility of surplus money in circulation which can fuel inflation is muted.
He said, “My view is that you only stoke inflation on the fiscal side if you inject new money. If the money that government is spending is from taxes, revenue and from borrowing not from the CBN then the impact on inflation is muted. Because the government is committed to not printing new money to spend, I think the N50 trillion budget will not stoke inflation.”
Meanwhile, Partner and Lead for PwC Strategy and Practice in West Africa, Mr. Olusegun Zaccheaus said Nigeria’s economy will achieve marginal GDP growth of 3.3 to 3.5 per cent in 2025, driven by sustained policy reforms. “We anticipate a marginal GDP growth of 3.3 to 3.5 per cent in 2025, underpinned by sustained policy reforms,” stated.
However, Zaccheaus noted that this growth might face challenges from persistent economic pressures. He added that inflation is expected to decline to around 26%, aided by tighter monetary policies and improvements in Nigeria’s foreign exchange market dynamics.
Zaccheaus identified opportunities for businesses to capitalize on export markets in Africa and globally, enhance targeted value chains, and adapt to industry consolidation. He also mentioned that Nigeria’s rebased GDP is expected to expand, reducing ratios such as debt-to-GDP and tax-to-GDP.
Meanwhile, PwC Partner, Kenneth Erikume, highlighted key factors expected to shape Nigeria’s industrial development in the medium term. These include policy reforms in agriculture, taxation, and special agro-industrial processing zones.