By Jemimah Wellington, JKNewsMedia Reporter
NIGERIA’s REAL GDP is projected to grow from 2.92% in 2024 to 3.3% in 2025, while inflation could decline from 32.5% to 25%, according to the International Monetary Fund (IMF).
However, challenges like rising currency circulation and increased money supply continue to pressure the economy.
The IMF’s October 2024 World Economic Outlook highlights that Nigeria’s inflation remains in double digits, exceeding regional targets.
External debt is expected to climb from 22.7% to 25% of GDP by 2025, while reserves could rise to 7.2% of imports.
Current account surpluses for oil exporters like Nigeria may narrow to nearly zero.
Central Bank of Nigeria (CBN) data also reveals a 56.13% annual increase in currency circulation, hitting ₦4.31 trillion in September 2024.
Cash held outside banks surged to 93.1% of currency in circulation, reflecting inflationary pressures and reliance on cash-based transactions.
The Centre for the Study of the Economies of Africa (CSEA) urges robust fiscal policies, domestic resource mobilisation, and infrastructure improvements for electronic payments to curb inflation and stabilise the economy.
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