Nigeria’s financial system is predicted to witness regular development, with analysts predicting that the nation’s Gross Home Product (GDP) might attain 5% beneath President Bola Tinubu’s administration.
CEO and Founding father of Awabah, Tunji Andrews, expressed confidence on this outlook throughout a dialogue on Drinks and Mics, a podcast co-hosted by Ugo Obi-Chukwu, CEO of Nairametrics; Dele Akintola, CEO of Alerzo; and Arnold Dublin Inexperienced of Cordos Capital.
Talking towards the backdrop of the newest GDP information launched by the Nationwide Bureau of Statistics (NBS) which confirmed a 3.84% year-on-year GDP development in This fall 2024 in Nigeria, Andrews said,
“I anticipate now that we’re going to begin inching up steadily. In the direction of the top of this administration, we are going to get 5%. I simply imagine it. As a result of the elements are simply saying the identical factor. The way in which the statisticians are trying on the numbers are the identical. The factor we’re including into GDP. If you happen to have a look at the trajectory, GDP, including to the bottom, rebasing it to a selected 12 months, there isn’t a how we don’t hit 5% so long as we stay secure.”
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The Financial Outlook
Andrews emphasised that Nigeria’s financial stability is the essential determinant of attaining this projection. He defined that rebasing GDP to a selected 12 months and sustaining stability would naturally result in a 5% development price over the following three to 5 years.
Whereas his prediction relies on statistical modeling and GDP trajectory, Andrews cautioned that exterior shocks—resembling coverage missteps, world monetary crises, or disruptions in key financial sectors—might derail this development.
Extra insights: In its newest report, the Nigerian Financial Summit Group (NESG) has attributed the nation’s improved financial development in 2024 to the positive factors from the Federal Authorities’s coverage reforms.
- Based on the NESG GDP Alert: 2024Q4 & Full 12 months 2024, launched on February 27, 2025, the Nigerian financial system maintained an upward development trajectory all year long, increasing by 3.8% within the fourth quarter (This fall) of 2024 relative to three.5% within the corresponding quarter of 2023.
- Based on NESG, Nigeria’s GDP development stood at 3.4% in 2024, surpassing the two.8% recorded in 2023.
- NESG recognized a mixture of fiscal and financial coverage changes, financial liberalization efforts, and elevated funding in infrastructure as main elements contributing to the improved financial efficiency.
The elimination of gasoline subsidies, alternate price unification, and aggressive tax reforms have been highlighted as key measures that helped stabilize macroeconomic fundamentals and enhance investor confidence.
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