The Mastercard Economics Institute’s 2025 Economic Outlook for Nigeria projects a GDP growth of 2.9% and a consumer spending increase of 6%. Inflation is expected to moderate to 22.1%. Despite challenges, the economy shows resilience, supported by remittance inflows and digital payment innovations, which enhance financial accessibility and security.
The Mastercard Economics Institute has published its 2025 Economic Outlook for Nigeria, indicating a projected GDP growth of 2.9% year over year, slightly below the global average of 3.2%. Consumer spending is expected to rise by 6%, despite facing challenges from a high inflation rate forecast at 22.1%. The report emphasizes the resilience and potential growth of Nigeria’s economy, primarily driven by remittance inflows, which help sustain household consumption.
Significant insights from the report reveal that while pricing pressures have persisted, consumer spending remains buoyant due to Nigeria’s youthful population and its robust informal economy. However, the high inflation continues to impact purchasing habits, prompting households to focus more on essential goods. The migration of citizens has resulted in substantial remittances, significantly contributing to the economy of Nigeria, particularly for lower-income communities.
The report noted that the growth of global remittances, which have seen an increase from $128 billion in 2000 to $857 billion in 2023, is important for economic recovery, especially within the context of local reform. The digitization of the payment system is expanding access to secure and efficient financial services, which is critical for Nigeria’s economic framework as it strives for greater financial inclusion amidst evolving global economic conditions.
In conclusion, the Mastercard Economics Institute’s 2025 Economic Outlook for Nigeria highlights the resilience of the economy amid inflationary pressures and challenges. The report underscores the importance of remittances and consumer spending in driving growth. As the country navigates through these economic shifts, fostering financial inclusion will be vital in ensuring sustainable development and adapting to changing global dynamics.
Original Source: www.mastercard.com
