The Mastercard Economics Institute projects Nigeria’s GDP to grow by 2.9% in 2025 while consumer spending rises by 6%. Consumer price inflation is expected to slow to 22.1%. Key aspects include robust remittance inflows and the impact of digital payments on financial inclusion.
The Mastercard Economics Institute has published its annual report, “Economic Outlook 2025,” which forecasts Nigeria’s economic landscape for the coming year. Key projections include a GDP growth rate of 2.9% and a rise in consumer spending by 6%. Notably, consumer price inflation is expected to moderate to 22.1%, despite ongoing challenges such as currency volatility and supply chain issues.
Nigeria’s economic resilience is credited to robust remittance inflows, which bolster household incomes. The report underscores the significance of financial inclusion as essential in addressing inflationary pressures while supporting overall economic development. “Nigeria’s economic outlook for 2025 highlights the country’s resilience and potential for growth,” states Khatija Haque, Chief Economist at Mastercard.
Increased consumer spending, primarily driven by Nigeria’s youthful population, indicates a shift in purchasing behaviors that prioritizes essential goods amid high inflation. The consumption trend is also influenced by a thriving informal economy, even as inflation continues to challenge discretionary spending.
Migration continues to shape Nigeria’s economic profile with substantial remittances playing a critical role in providing financial support to numerous households. Global remittances are projected to grow due to economic recovery and local reforms, with Nigeria benefitting significantly as digital payment solutions enhance the efficiency of transactions.
Mastercard is committed to developing contactless payment solutions to streamline financial transactions in Nigeria. Folasade Femi-Lawal, Country Manager for West Africa, remarked on the importance of these solutions in fostering an inclusive financial ecosystem that will support economic growth.
The “Economic Outlook 2025” report employs diverse public and proprietary data sets to provide insights into economic activity, accentuating Mastercard’s role in empowering people and economies through innovative financial solutions and sustainable practices across over 200 countries.
In conclusion, the Mastercard Economics Institute’s “Economic Outlook 2025” presents a cautiously optimistic view of Nigeria’s economy, with a projected GDP growth of 2.9%, a rise in consumer spending, and moderated inflation. Key factors contributing to this outlook include significant remittance inflows and the growth of digital payment systems. Addressing inflation and fostering financial inclusion remains crucial for sustainable economic development.
Original Source: www.mastercard.com
