According to a recent report by BMI, Nigeria’s economic growth is expected to reach 3.5% in 2025, but challenges remain. Despite projected growth, factors such as weak Foreign Direct Investment (FDI) and low oil production could impact the country's economic performance. The report highlights a projected inflation rate of 20.2%, affecting domestic demand.
Although reforms under President Tinubu’s administration have led to some positive market sentiment, concerns about the business environment persist. Oil production is anticipated to decline further due to underinvestment and oil theft, which may slow overall economic performance.
The report also forecasts potential positive contributions from net exports in 2025, with increased output from the Dangote refinery positioning Nigeria as a net fuel exporter. This could improve non-oil sector activity and consumer purchasing power as inflation moderates and credit demand rises. However, Nigeria’s economic growth may continue to underperform due to persistent issues within its business environment and limited FDI.