Nigeria’s Gross Domestic Product (GDP) is expected to expand by 3.4 percent in 2025, driven by higher crude oil output and stronger performances across key non-oil sectors such as finance and insurance, construction, ICT, and real estate.
This forecast was contained in PwC Nigeria’s Mid-Year Review and Updates: H2 2025 Economic Outlook, released on Tuesday. The firm also projected headline inflation to ease to 21.46 percent next year, reflecting the impact of tighter monetary policies and greater stability in the foreign exchange market.
PwC noted that the anticipated moderation in inflation could pave the way for the Central Bank of Nigeria (CBN) to gradually ease its monetary policy stance in the second half of 2025. It added that the naira is likely to remain broadly stable throughout the year, supported by ongoing reforms at the CBN and improved portfolio inflows.
However, the report cautioned that fiscal sustainability risks will persist, citing weak revenue mobilization and heavy debt servicing obligations.
Authored by PwC Partner and Chief Economist for West Africa, Olusegun Zaccheaus, and Associate Director, Akolawole Odunlami, the outlook also outlined strategic imperatives for both government and business leaders navigating the country’s evolving economic landscape.
For government, PwC recommended six key actions, including:
- Strengthening fiscal sustainability through prudent debt management, improved fiscal discipline, and accelerated tax reforms.
- Enhancing monetary policy coordination to keep inflation in check and ensure credit flows to productive sectors.
- Proactively addressing domestic and global risks by developing adaptive strategies to mitigate geopolitical, trade, and climate-related challenges, while leveraging megatrends such as AI, digitalisation, and green finance.
For businesses, PwC advised leaders to embrace five core strategies: leverage foreign exchange stability while staying flexible, prioritize cost efficiency and financial discipline, strengthen risk management and scenario planning, adopt digital and operational transformation, and engage actively with evolving policy and regulatory frameworks.
The report underscores that while Nigeria faces ongoing economic headwinds, opportunities remain for government and businesses that adapt swiftly and strategically.
