Nigeria’s economy registered its greatest growth in almost a decade, expanding 4.6% year -on -year in the fourth quarter of 2024. This increase is attributed to robust tax reforms and solid performance in non -oil sectors, according to the Bank of Worned.
Under the administration of President Bola Tinubu, Nigeria has implemented bold economic reforms aimed at stabilizing the nation’s finances. The key measures include the elimination of fuel subsidies, cuts in electricity rates and significant devaluations of the Nigerian Naira.
These steps have contributed to a more unified and reflected exchange rate in the market, which allows the Central Bank of Nigeria to rebuild official reserves, which now exceeded $ 37 billion.
Alex Sienaert, the main economist of the World Bank for Nigeria, stressed that these reforms have led to a notable increase in government revenues, which increases 4.5% of GDP in 2024. This fiscal improvement has allowed a reduction in the fiscal deficit of 5.4% in 2023 to 3% estimated in 2024, comfort for reists.
Despite the positive growth trajectory, Nigeria continues to deal with high inflation, a challenge exacerbated by the reforms that drive economic expansion. The elimination of subsidies and devals of currencies has led to higher costs of goods and services, exercising a tension in consumers. The World Bank projects that inflation could average approximately 22% in 2025, assuming that the Central Bank maintains in its current narrow monetary policy.
According to Nairamerics, looking to the future, the World Bank predicts that Nigeria’s economy grows 3.6% in 2025, based on the impulse of the previous year. This growth is expected to be driven by continuous improvements in non -oil sectors, particularly services such as financial services, telecommunications and information technology. In addition, it is anticipated that the ease of inflationary pressures and the best commercial feeling support this positive trend.
However, the complete benefits of the reforms implemented, particularly the elimination of fuel subsidies, have not yet been carried out. The World Bank emphasizes the need for sustained monetary and disciplined tax policies to address continuous inflation challenges and guarantee long -term economic stability.