CBN Governor Olayemi Cardoso Forecasts 4.17% Economic Growth, Easing Inflation in 2025

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The Central Bank of Nigeria Governor, Olayemi Cardoso, has expressed optimism about the country's economic prospects in 2025. According to Cardoso, Nigeria's Gross Domestic Product (GDP) is expected to grow by 4.17 percent, while inflation is anticipated to ease. This is welcome news, given the country's current inflation rate of 34.80 percent, which has made everyday items increasingly expensive.¹

For instance, food inflation has hit 39.84 percent year-over-year, driven by rising prices of essentials. This has made it challenging for Nigerians to afford basic necessities. However, Cardoso believes that President Bola Tinubu's reforms will start to yield results, leading to a decline in inflation.

In addition to the expected decline in inflation, Cardoso also reported that foreign exchange reserves have risen gradually, driven by increased oil production. Oil output is forecast to reach 2.3 million barrels per day by mid-year. Furthermore, Cardoso pledged to take Nigeria's foreign exchange reserves to over $40 billion, following a $6 billion FX inflow in 2024.

The central bank's priority remains maintaining price stability and bolstering market confidence. To achieve this, the bank aims to enhance transparency and efficiency within the foreign exchange market. With limited opportunities for FX arbitrage, Cardoso expects that there will be more appetite for real sector development.

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