NESG lists risk factors to economic growth in 2025
…commends FG for 3.8% GDP growth in 2024
By Tunde Opalana
The Nigerian Economic Summit Group (NESG) has listed; inflationary pressures, exchange rate volatility, and security concerns, as risk factors that could hinder economic stability in 2025.
Should the Federal Government taken adequate care of the factors, the Group projected a sustained positive growth trajectory.
It said such growth is contingent on continued implementation of structural reforms and strategic investment in key sectors.
This is according to the NESG GDP Alert: 2024Q4 & Full Year 2024, released on, Thursday, February 27, 2025.
However, the NESG commended Federal Government’s policy reforms which was said to have been responsible for the country’s improved economic growth in 2024.
The group noted that “the government’s bold reforms are yielding results, albeit sub optimal and insufficient to sustain economic growth over the medium term.
These reforms, such as the removal of fuel subsidies, exchange rate harmonisation, and other complementary measures aimed at addressing the structural bottlenecks, are found to favourably impact the performance of key sectors in the year.
“The Nigerian economy maintained an upward growth trajectory throughout the year, expanding by 3.8% in the fourth quarter (Q4) of 2024 relative to 3.5% in the corresponding quarter of 2023.
“On a quarter-on-quarter basis, the real Gross Domestic Product (GDP) grew by 12.4% in Q4 2024, compared to 11.9% in Q4 2023.
“Cumulatively, Nigeria’s GDP growth stood at 3.4% in 2024, surpassing the 2.8% recorded in 2023”.
The NESG identified a combination of “fiscal and monetary policy adjustments, economic liberalization efforts, and increased investment in infrastructure” as major factors contributing to the improved economic performance.
The “removal of fuel subsidies, exchange rate unification, and aggressive tax reforms were highlighted as key measures that helped stabilize macroeconomic fundamentals and boost investor confidence.
READ ALSO: E-paper: 10 things you need to know on The DailytimesNGR
“Increased foreign direct investment (FDI) inflows, particularly in the technology, manufacturing, and agricultural sectors, also contributed to the overall economic expansion.
“The government’s focus on enhancing ease of doing business and providing targeted incentives for the private sector played a pivotal role in sustaining growth momentum.”
Recall that the National Bureau of Statistics (NBS) in its latest GDP data released a few days ago indicated a 3.84% year-on-year GDP growth in Q4 2024.
To sustain the economic gains in 2025, the group recommended “further strengthening of power sector reforms, addressing forex market inefficiencies, and ensuring policy consistency.”
