2025 MACROECONOMIC OUTLOOK
INTRODUCTION
Nigeria’s macroeconomic outlook for 2025 presents a challenging landscape, characterized by persistent fiscal and structural issues that weigh on its economic performance. The country continues to grapple with a heavy public debt burden, estimated at approximately ₦134.30 trillion (US$91.35 billion), coupled with shallow government revenues, which stand at around 6% of GDP. These issues are compounded by soaring inflation, eroding consumers’ purchasing power and further straining the economy. Despite ongoing efforts to diversify into non-oil sectors such as agriculture, ICT, and transportation, Nigeria remains heavily reliant on oil, which faces production challenges and global price volatility. Oil revenues continue to contribute a significant share of government revenue and foreign exchange earnings, making the economy highly sensitive to fluctuations in global oil prices. When oil prices are high, the country experiences increased revenues that can be channeled into development projects and fiscal expenditures. Conversely, when oil prices are low, revenues decrease, limiting the capacity for such investments.
Nigeria’s 2024 Macroeconomic Performance
The message of “renewed hope" has continued to resonate across Nigeria’s economic landscape in the quarters of 2024 under President Bola Tinubu’s administration. However, the reality has painted a different picture to the citizens, with the economic performance diverging from the optimistic narrative view of the people. This divergence reflects the complex challenges facing the economy, which continues to be shaped by various factors. Nigeria’s macroeconomic performance in 2024 was influenced by several critical sectors, including the real sector, fiscal and government sector, Monetary and financial sector, and external sector. A closer examination of each of these sectors reveals relevant trends and projections that provide insight into the country’s economic outlook in the coming years.
The Real Sector
The real sector, comprising industries like agriculture, manufacturing, and services, is expected to continue playing a crucial role in Nigeria’s economic performance in 2024.
Agriculture: Agriculture remains a cornerstone of Nigeria’s economy, contributing nearly (22%-25%) to GDP and employing 70% of the country’s workforce. In 2025, the sector is expected to face continued growth, driven by improvements in Agro-processing, technological adoption in farming, and increased export opportunities for crops like cocoa, cassava, and palm oil. However, challenges such as insecurity and climate change continue to pose risks to production.
Manufacturing and Industry: Nigeria’s Manufacturing sector faced significant challenges, with the NESG-Stanbic IBTC BCM index dropping to -28.72 in October 2024, reflecting negative business performance and a notable decline from the previous month. Key challenges include high energy costs, particularly electricity, and inadequate infrastructure. However, efforts to enhance industrial production, supported by government policies and infrastructure development, could offer some optimism for moderate growth in the manufacturing sector in 2025.
Service: GDP from Services in Nigeria increased to 10777518.06 NGN Million in the third quarter of 2024 from 10744698.76 NGN Million in the second quarter of 2024. GDP from Services in Nigeria averaged 6614644.59 NGN Million from 2010 until 2024, reaching an all-time high of 10777518.06 NGN Million in the third quarter of 2024. The services sector, including telecommunications, trade, and financial services, is expected to experience steady growth in 2025. The Information and Communication Technology (ICT) sector is one of the most dynamic, projected to grow at 13.18%. Financial services, driven by the expansion of digital banking, mobile payment platforms, and fintech, will likely continue expanding as well.
Monetary and Financial Sector
The monetary sector encompasses the central bank’s policies, inflation, interest rates, and overall financial system stability.
Inflation: Nigeria’s inflation has remained high throughout 2024, driven by factors like rising food prices, exchange rate instability, and supply issues. In April 2024, the inflation rate increased to 33.69%, up from 33.20% in March. Food inflation was particularly high, reaching 40.53% in April. By May 2024, the overall inflation rate rose further to 33.95%. According to the National Bureau of Statistics (NBS), the inflation rate continued to climb in June 2024, reaching 34.19%, an increase of 0.24 percentage points from May. In July 2024, inflation slightly moderated to 33.40% from 34.19% in June. However, it rose again in September to 32.70%, marking a reversal after two months of declines. By October 2024, inflation increased to 33.88%, and by November, it further climbed to 34.6%.
Inflation rate from Jan-Dec., 2024
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec |
| Inflation Rate (%) | 29.9 | 32.7 | 33.2 | 33.69 | 33.95 | 34.19 | 33.4 | 32.15 | 32.7 | 33.88 | 34.6 | 33.9 |
In January 2024, the interest rate stood at 18.75%, increasing to 22.75% by February. In response to inflation concerns, managing inflation expectations, and stabilizing the exchange rate, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) raised the key Monetary Policy Rate (MPR) by 200 basis points to an all-time high of 24.75% on March 26, 2024. The rate slightly dropped to 24.74% in April but then increased to 26.25% in May, where it remained throughout June. The rate continued to rise, reaching 26.75% in July and August. By September, it increased to 27.25%, ultimately reaching 27.5% in November and December.
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec |
| Interest rate (%) | 18.75 | 22.75 | 24.75 | 24.75 | 26.25 | 26.25 | 26.75 | 26.75 | 27.25 | 27.50 | 27.50 | 27.50 |
Exchange Rates: exchange rate and foreign exchange reserves will play a crucial role in managing this issue. Unless there are substantial adjustments in Nigeria’s economic fundamentals, the devaluation of the Naira may persist. The continuous rise in the value of the Dollar against the Naira is deeply concerning. For instance, the Naira was valued at 413 Naira to a Dollar in 2021, rising to 449 Naira in 2023. This upward trend continued drastically in 2024, surpassing twice the value of 2023. Currently, the Naira is worth over 1500 Naira to a Dollar, placing the economy in a precarious situation. The persistent depreciation of the Naira poses serious risks for Nigeria’s economy, with implications for inflation, poverty, foreign debt, and overall economic stability. The actions of the CBN, along with broader economic reforms, will be necessary to managing this crisis in 2025. To restore confidence in the Naira and stabilize the economy, the government must take urgent steps. These may include diversifying revenue sources, reducing dependence on imports, and addressing key structural issues in the economy.
EXTERNAL SECTOR
The external sector, including trade, foreign exchange, and external debt, remains a critical area in 2024.
Oil Exports and Revenues: Nigeria’s economy remains heavily dependent on oil exports, making it vulnerable to global oil price fluctuations. In 2025, oil prices are expected to remain volatile, influenced by global demand and geopolitical factors. Reduced oil production, due to infrastructure challenges and pipeline vandalism, could further constrain Nigeria’s oil export revenues.
Non-Oil Exports: While oil continues to dominate, Nigeria is focusing on diversifying its exports. The agriculture sector, including products like cocoa, palm oil, and cassava, will play a crucial role in non-oil export growth. The government’s push for export diversification may offer some resilience to the external sector.
Foreign Exchange Reserves: Nigeria’s foreign exchange reserves are projected to remain under pressure due to reliance on oil exports and reduced foreign investment. The exchange rate is expected to remain volatile, with the naira continuing to face depreciation pressures against major currencies.
External Debt: Nigeria’s external debt remains a concern, with foreign borrowing continuing to finance the deficit budget. External Debt in Nigeria increased to 42160 USD Million in the second quarter of 2024 from 42120 USD Million in the first quarter of 2024. External Debt in Nigeria averaged 19975.14 USD Million from 2000 until 2024, reaching an all-time high of 43159.19 USD Million in the second quarter of 2023 and a record low of 3287.73 USD Million in the first quarter of 2007 (CBN). Debt servicing will continue to put pressure on Nigeria’s foreign exchange reserves, limiting the country’s ability to accumulate more reserves and potentially leading to foreign exchange shortages.
Highlights of Domestic and global policies that shaped 2024
The 2024 economy in Nigeria and globally was shaped by a combination of domestic policies, global economic trends, and external factors. Below are the highlights of the key policies and trends that influenced the performance of the economy in 2024:
Domestic Policies That Shaped Nigeria’s 2024 Economy
Monetary Policy Adjustments by the Central Bank of Nigeria (CBN)
In response to soaring inflation and the need for currency stabilization, the CBN maintained tight monetary policies. This included interest rate hikes to curb inflation and manage exchange rate pressures. These actions influenced borrowing costs, investment patterns, and inflation rates.
Currency management also continued to be a main focus. The Naira’s depreciation persisted despite interventions, with the Central Bank taking steps to stabilize the currency through foreign exchange interventions.
Fiscal Reforms and Government Spending
The Federal Government pursued policies to manage fiscal deficits, primarily through tax reforms and increased revenue generation. Notably, the new withholding tax laws, effective from January 2025, were designed to reduce tax rates and provide exemptions for small and medium-sized enterprises (SMEs), with the aim of improving business conditions and fostering growth.
The 2025 budget also targeted strategic investments in infrastructure, especially in roads, energy, and social welfare, to stimulate economic activity and reduce poverty.
Energy and Power Sector Reforms
The Nigerian government pushed for reforms in the energy sector, aiming to improve electricity generation and distribution. Efforts to address fuel subsidies and invest in renewable energy were part of an ongoing drive to reduce the nation’s reliance on imported fuel and increase domestic energy capacity.
Tax Reforms
The introduction of the Digital Services Tax (DST) aimed at foreign tech companies was a key development. This tax sought to bring in much-needed revenue and address the low tax-to-GDP ratio by ensuring global tech companies contribute more fairly to the Nigerian economy.
The National Tax Policy continued to guide tax compliance improvements and enhanced the tax base for better revenue collection.
Security and Stability Efforts
While security challenges continued to affect some regions, the government prioritized efforts to combat insurgency and banditry while supporting peacebuilding initiatives and regional stability, which are critical for sustained economic development.
Global Policies and Trends That Shaped 2024 Economic Performance
Monetary Policy Tightening by Central Banks (U.S. and Others)
Globally, many central banks, including the U.S. Federal Reserve and European Central Bank (ECB), continued interest rate hikes to combat inflation and stabilize their economies. These policies had direct consequences for capital flows, with developing countries like Nigeria facing capital outflows and depreciation pressures on their currencies.
The rising global interest rates increased borrowing costs worldwide, affecting investment decisions and financial markets, especially in emerging markets like Nigeria.
Global Supply Chain Disruptions
Ongoing supply chain disruptions from the Russia-Ukraine conflict, climate-related disasters and COVID-19 pandemic aftermath continued to disturb global trade. These disruptions led to higher input costs for goods, aggravating inflation pressures in many countries, including Nigeria.
For Nigeria, the disruption in the global supply of goods, especially food and energy products, contributed to the food inflation seen in 2024, impacting domestic prices.
Russia-Ukraine Conflict
The Russia-Ukraine conflict in 2024 continued to impact global energy prices and disrupt global commodity supply chains. Higher global energy costs added inflationary pressures and influenced food security worldwide. In Nigeria, this translated into higher costs for energy and food products, resulting to inflationary pressures. The conflict also led to global re-evaluation of energy sourcing, with many nations pursuing energy diversification, an area Nigeria could capitalize on.
Global Inflation and Recession Concerns
Several global economies, particularly in developed countries, were grappling with elevated inflation levels, partly due to supply chain issues and energy costs. There were concerns about a global economic slowdown or recession, which could reduce demand for Nigeria’s exports and slow down investment in emerging markets.
The economic slowdown in key trading partners and global growth uncertainty impacted demand for Nigerian products, particularly oil, and could dampen investor confidence.
China’s Economic Slowdown
China, one of the core trading partners for Nigeria, saw slower economic growth in 2024, partly due to its own internal challenges and declining demand in export. This had implications for global trade flows, including commodity demand, and thus impacted countries like Nigeria, which rely on Chinese demand for their exports.
International Energy Transition Policies
The global push toward renewable energy and the transition to greener economies continued in 2024, leading to a decrease in demand for traditional fossil fuels. While this could have long-term effects on oil-exporting countries like Nigeria, in the short term, oil prices remained volatile due to geopolitical tensions and market uncertainties.
Global Digital Economy Expansion
The expansion of the digital economy globally had significant effects on Nigeria’s economy, particularly through e-commerce and online services. The Digital Services Tax (DST) proposal in Nigeria was aligned with global efforts to ensure fair taxation of global tech companies, marking a global trend toward digital economy taxation.
2025 OUTLOOK
INFLATION OUTLOOK
Inflation is expected to remain upsurge in 2025, although it is expected to ease moderately compared to 2024. The inflation rate is projected to average 31.81% in a bull case scenario, 34.52% in a base case scenario, and 37.16% in a bear case scenario. This will be a 1.75% improvement (base case) from an estimated average of 32.77% in 2024. The sustained inflationary pressure will be driven by recurring challenges such as currency depreciation, food inflation due to insecurity and climate change impact (such as flooding), high energy costs, elevated logistics costs, rising foreign exchange rates and disruptions in the supply chain, particularly affecting food production and distribution.
The targeted rate of inflation is 15% in the 2025 budget, which appears unrealistic as the country is yet to grapple with the pass-through effect of exchange rate instability and the incessant security challenges.
Beyond 2025 based on CEPAR, Projection
2026: Inflation in Nigeria may drop by 2026 due to factors such as improved exchange rate stability, effective monetary and fiscal policies, and economic diversification into sectors like agriculture and manufacturing. Inflation is expected to gradually ease, but it will likely remain high due to the continued structural challenges, improved exchange rate stability, effective monetary and fiscal policies, and economic diversification into sectors like agriculture.
According to the Centre for Economic Policy Analysis and Research (CEPAR), the expected average inflation rate in Nigeria by 2026 could range from 24% to 27%. This suggests that while inflation may ease gradually, it is likely to remain elevated compared to global norms due to these persistent structural and economic challenges.
2027: If some of the underlying issues such as security and supply chain disruptions are addressed, inflation may drop further, potentially averaging around 20-22%. However, external factors such as global commodity prices and exchange rates will still exert significant pressure on inflation.
Gross Domestic Product (GDP) Outlook
The primary drivers of growth in 2025 are expected to be the non-oil sectors, with the agricultural sector remaining a key contributor to the economy, though its share is projected to slightly decrease as other sectors gain momentum. Agriculture is estimated to contribute approximately 22% to 25% of GDP by 2025, with growth likely to come from agro-processing, improved farming technologies, and expanded export opportunities for crops like cocoa, cassava, and palm oil.
The transportation sector is projected to grow at 6.77%, driven by investments in infrastructure, including road construction, railways, and air transport. The growing demand for logistics and mobility services, especially due to the rise of e-commerce, is also a key factor supporting this positive trend.
The Information and Communication Technology (ICT) sector has been growing at about 7.2% but is projected to increase significantly to 13.18% in 2025. This growth is fuelled by Nigeria’s expanding digital economy, greater internet penetration, mobile technology adoption, and government initiatives to promote tech-driven industries.
In terms of overall GDP growth, it is projected to slightly increase to 3.6% in the first quarter of 2025, reflecting the impact of structural reforms and continued diversification into sectors such as technology, agriculture, and services. However, the economy will continue to face challenges, including inflationary pressures, external shocks, and political instability, which could affect growth outcomes.
Beyond 2025 based on CEPAR, Projection
2026: Economic growth is projected to stabilize at around 4.3%. This growth will be supported by ongoing diversification, especially in non-oil sectors such as ICT, agriculture, and manufacturing, while infrastructural development and improved security could foster a more conducive business environment. However, external challenges like global market fluctuations and inflation may still dampen growth prospects.
2027: The economy is expected to see more robust growth of around 5.2%, assuming effective implementation of structural reforms, continued infrastructure investment, and a stable political environment. By then, non-oil sectors are expected to play an even larger role, with agriculture, technology, and services contributing significantly to GDP. However, inflationary risks and external factors will remain important variables influencing the overall growth trajectory.
EXCHANGE RATE OUTLOOK
The exchange rate outlook for Nigeria in 2025 remains uncertain, with expectations for continued depreciation of the Naira, influenced by inflation, oil price fluctuations, and foreign exchange challenges. While efforts to diversify
the economy and attract foreign investment could provide some stabilization, volatility and external shocks remain significant risks. The Central Bank’s policies and global economic factors will play a key role in shaping the exchange rate trajectory throughout 2025.
Nigeria Exchange Rate Outlook Beyond 2025 (CEPAR Projection)
The Centre for Economic Policy Analysis and Research (CEPAR) projects that Nigeria’s exchange rate in 2026 may lie within the range of N1500 and N1800 per USD. This outlook is influenced by key factors such as inflationary trends, oil prices, global economic conditions, and exchange rate instability.
Nigeria Exchange Rate Projection for 2027
Looking ahead to 2027, the exchange rate for the Nigerian Naira is projected to remain under pressure but could experience more stabilization or slight appreciation if economic reforms take hold. Based on current economic conditions and the CEPAR projection, the exchange rate could fall within the range of N1300 to N1600 per USD and that Nigeria exchange rate is not likely to fall beyond N1000 again due to global economic fluctuations and unfriendly domestic inflation
Oil Prices & External Factors
Oil prices, while volatile, will continue to influence Nigeria’s fiscal position. However, with the global push for clean energy and Nigeria’s efforts to diversify, the country’s revenue base will become less reliant on oil exports
Recent updates on Nigeria’s oil refinery situation include significant efforts to revive and expand the country’s domestic refining ability, addressing long-standing challenges related to fuel imports and price volatility. Here are key points regarding the oil refinery landscape:
Refinery Rehabilitation:
The Nigerian government has been making notable effort to rehabilitate its refineries that have been underperforming for years. The Port Harcourt Refinery, owned by the state-run Nigerian National Petroleum Corporation (NNPC), has been a major focus. The Dangote Refinery, a large private refinery also functioningis also set to change the game.
The government has been working on restoring capacity at the Warri and Kaduna Refineries as part of a broader effort to reduce dependency on refined petroleum imports.
Dangote Refinery:
The Dangote Refinery, located in Lekki, Lagos, is a major private sector investment with a refining capacity of about 650,000 barrels per day in operation, it is expected to meet a significant portion of Nigeria’s domestic fuel demand and potentially export refined products. This refinery, expected to commence operations soon, has the potential to transform Nigeria’s oil industry.
Fuel Subsidy Removal
Nigeria has historically subsidized fuel prices, which has been a source of financial strain. In 2023, the government made instant moves toward subsidy removal, which led to higher fuel prices. However, some states, particularly in northern regions, have been reported to offer subsidized fuel through specific state-level initiatives or arrangements to cushion the impact on their populations. The subsidy removal is expected to continue as part of the reforms to make the oil sector more sustainable and to boost local refining.
Private Sector Involvement and Investment:
Alongside Dangote, other private companies are also entering the sector to improve refining capacity. Petrolex Refinery, for example, is another key player working on projects to increase local fuel production and reduce import dependency.
External factors such as global commodity prices, foreign exchange fluctuations, and international trade conditions will also play a role in shaping Nigeria’s economic performance in 2025.
RISKS TO 2025 0UTLOOK
Unemployment and Poverty
High Unemployment: Nigeria’s youth unemployment rate remains high, and the country faces a growing demographic of young people entering the labour force without sufficient job opportunities. High unemployment can lead to social unrest, reduced consumer spending, and a brain drain as educated Nigerians seek opportunities abroad.
Rising Poverty Levels: Poverty rates in Nigeria are high, and rising inflation and unemployment could exacerbate poverty levels in 2025. The combination of low-income growth and rising costs of living could increase social dissatisfaction and strain the country’s social services.
Inflationary Pressures
Rising Inflation: Nigeria is already grappling with high inflation, driven by the devaluation of the Naira, rising food prices, and global supply chain disruptions. In 2025, inflation could worsen if exchange rates continue to rise, further reducing the purchasing power of Nigerians. High inflation may lead to social unrest, lower consumer spending, and reduced investment in the economy.
Food and Energy Prices: With fuel subsidies being a contentious issue, energy prices, especially fuel and electricity, could remain high. This would contribute to inflation, especially in sectors such as transportation, agriculture, and manufacturing, which are highly sensitive to energy prices.
Debt Sustainability Concerns
Rising Debt Burden: Nigeria’s foreign and domestic debt has been growing in recent years. The combination of debt servicing and rising interest rates could strain the country’s fiscal space. The depreciation of the Naira makes it more expensive for Nigeria to service its foreign-denominated debts, adding pressure to government finances.
Fiscally Constrained Government: With Nigeria’s fiscal space already limited due to revenue shortfalls, the government may face difficulty in addressing critical needs like infrastructure development, education, and healthcare, potentially leading to a fiscal crisis or increased borrowing to meet obligations.
Exchange Rate Instability
Volatility in the Naira: The Naira has been on a devaluation path, and if the trend continues, Nigeria may face persistent currency instability. A further decline in the Naira’s value could lead to increased inflation, reduced purchasing power, and higher costs for businesses that rely on imports. This could negatively affect both consumer and business confidence.
Pressure on Foreign Reserves: Continued depreciation could put pressure on Nigeria’s foreign exchange reserves, which are needed to stabilize the Naira. If foreign exchange reserves are depleted or not replenished, the Central Bank may struggle to manage the currency, leading to possible exchange rate crises.
Trumponomics and its implications
“Trumponomics" is a term used to describe the economic policies and strategies implemented by former U.S. President Donald Trump during his administration from 2017 to 2021. It encompasses several key themes, which were rooted in Trump’s “America First" ideology and aimed at reshaping the U.S. economy to prioritize national interests, reduce reliance on foreign influence, and stimulate domestic growth. The main pillars of Trumpnomics included:
Diminished U.S. Foreign Aid and Investment in Africa
Under Trump, the U.S. reduced its foreign aid to many regions, including Africa. Trump’s “America First" stance prioritized U.S. interests over international development aid and initiatives, which resulted in a shift away from multilateral engagement, including in Africa.
Effect: Nigeria, along with other African nations, saw a reduction in U.S. assistance, including funding for health programs, education, infrastructure, and development. The U.S. government under Trump also distanced itself from large-scale international agreements and organizations that provided support to developing countries.
Immigration and Labour Market Disruption
Trump’s stringent immigration policies, such as reducing the number of refugees and limiting legal immigration, had global ramifications. The U.S. also took a hard stance on visas, including for skilled workers and students.
Effect: Many Nigerians migrate to the U.S. for better educational and employment opportunities. Trump’s policies limited these opportunities, making it harder for Nigerians to access U.S. educational programs, which were often a path to better employment prospects. Immigration restrictions may have affected the flow of remittances from Nigerians living in the U.S. to their families back home. Remittances are a significant source of income for Nigeria and a key support for many Nigerian households. Any reduction in remittances would exacerbate poverty and social instability in Nigeria.
Nigeria’s Tax Reforms
In line with ongoing tax reforms in Nigeria, the federal government is set to implement new withholding tax laws starting from 1st January 2025, aimed at reducing tax rates and offering full exemptions for many businesses, particularly Small and Medium Enterprises (SMEs) with an annual turnover not exceeding N25 million. These regulations, which have already been gazetted, are designed to simplify the tax deduction process at the source, reduce tax rates for low-margin sectors, and promote easier tax compliance. The new regulations apply to taxes deductible at source under various tax laws, including the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and Personal Income Tax Act.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, announced that the withholding tax deduction regulations will take effect on 1st January 2025, following a 90-day notice period in accordance with the 2017 National Tax Policy. This grace period allows businesses to adjust to the changes.
Additionally, Nigeria is expected to introduce a Digital Services Tax (DST) in 2025 to target revenue from foreign tech companies operating in the digital space, such as e-commerce, social media, and online streaming platforms. This tax aims to ensure that these foreign companies contribute fairly to Nigeria’s economy, addressing the country’s low tax-to-GDP ratio of around 6%.
Nigeria’s 2025 Budget- Budget of restoration
On 18 December 2024, the President presented the 2025 Budget – a record N49.7trillion, a 41.9% increase from the previous year tagged ‘The Restoration Budget: Securing peace, Rebuilding prosperity. The budget prioritises:
Defence & Security: N4.91 trillion, Infrastructure: N4.06 trillion, Education: N3.5 trillion, Health: N72.4 trillion. With a projected deficit of N13.39 trillion, funding will be sourced from: Debt (69%), Loans (28%), Asset sales (2%).
The Budget will consolidate on key reforms such as the new minimum wage, duty-free food imports, and tax updates. In summary, while the nominal increase in the 2025 budget reflects an ambitious policy shift, its success will depend on effective revenue generation, debt management, project execution, and addressing inflation and exchange rate volatility. Without tackling these challenges, the budget’s ability to deliver meaningful growth could be limited.
Nigeria: Reforms to Shared Prosperity
Investing in Human Capital Development
Reform Strategy: Nigeria’s future prosperity is linked to its people. Value addition in education, healthcare, and skills development is essential for enhancing productivity and creating opportunities for the wide population.
Focus Area:
Education: Increasing funding for primary, secondary, and tertiary education, as well as vocational training, to build a skilled workforce.
Healthcare: Enlarging access to affordable healthcare services, improving public health infrastructure, and addressing maternal and child health challenges.
Social Welfare: Implementing social protection programs, such as cash transfers (trader Moni, farmer Moni and market Moni), tax relief, grants and aids will help to protect the most vulnerable populations.
Economic Impact: An educated and healthy workforce is more productive and adaptable to a changing economy. By improving human capital, Nigeria can boost economic growth and ensure that prosperity is shared more widely, particularly with marginalized groups.
Improved Governance and Anti-Corruption Measures
Reform Strategy: Strengthening governance and combating corruption are vital for fostering shared prosperity. Corruption diverts public resources away from critical investments in infrastructure, education, and healthcare, hindering poverty reduction.
Focus Area:
Public Sector Reforms: Implementing better accountability and transparency in government spending, procurement processes, and service delivery.
Anti-Corruption Initiatives: Strengthening anti-corruption institutions, implementing stricter penalties, and ensuring high-level political will to combat graft.
Economic Impact: Reducing corruption would lead to more efficient use of public funds, increase investor confidence, and ensure that resources are directed toward poverty reduction and public goods, leading to improved living standards for all citizens.
Infrastructure Investment
Reform Strategy: Infrastructure development is a key enabler of economic growth and poverty reduction. It facilitates trade, attracts investment, and creates jobs. Ensuring equitable access to infrastructure is also crucial for shared prosperity.
Focus Areas:
Energy: Expanding access to electricity and renewable energy sources to power industries, homes, and rural areas.
Transportation: Improving roads, railways, and ports to facilitate the movement of goods and people, particularly in underserved regions.
Urban Development: Focusing on affordable housing and urban planning to accommodate Nigeria’s rapidly growing population.
Economic Impact: Improved infrastructure can unlock new markets, lower business costs, create jobs, and improve living standards. Additionally, infrastructure investment in underserved regions can help reduce regional inequalities and promote inclusive growth.