The Mastercard Economics Institute’s ‘Economic Outlook 2025’ projects Nigeria’s GDP growth at 2.9%, consumer spending to rise by 6%, but inflation remains high at 22.1%. Remittances and digital payment innovations are emphasized as crucial for economic resilience, while financial inclusion is highlighted as necessary for sustainable development.
The Mastercard Economics Institute has released the ‘Economic Outlook 2025’ report, projecting Nigeria’s economy and key indicators amidst ongoing global changes. Nigeria’s GDP is forecasted to grow by 2.9% in 2025, slightly below the global average of 3.2%, while consumer spending is expected to increase by 6%. Despite these positive forecasts, consumer price inflation is predicted to remain high at 22.1%, posing significant challenges for households and businesses alike.
Robust remittance inflows are anticipated to drive economic growth, sustaining household incomes and consumer expenditure. The resilience of Nigeria’s economy, bolstered by remittances and a youthful population, is evident even amidst global challenges. Khatija Haque, chief economist at Mastercard, emphasizes the importance of financial inclusion and addressing inflation as fundamental to fostering sustainable development in Nigeria.
Folasade Femi-Lawal, Mastercard Nigeria’s Country Manager, noted the critical role remittances play in enhancing economic resilience. The company is committed to improving contactless payment solutions to streamline transactions and increase security, thereby facilitating a more inclusive financial ecosystem.
Consumer behaviour is currently influenced by rising prices, with inflation remaining a significant concern. Even with inflation expected to decrease from over 33% in 2024 to 22.1% in 2025, households are prioritizing essential goods and services over discretionary items.
Migration has emerged as a factor in economic dynamics, leading to higher remittances that support communities in Nigeria. Global remittances significantly increased from $128 billion in 2000 to $857 billion in 2023, with further growth anticipated. The ongoing digitization of payment systems facilitates secure, efficient remittance channels, contributing to financial inclusion and enabling underserved populations to access necessary financial services.
The ‘Economic Outlook 2025’ report synthesizes a variety of public and proprietary data, including Mastercard’s sales activity, to estimate economic activity and provide insights into Nigeria’s evolving economic landscape.
In summary, the Mastercard Economics Institute’s ‘Economic Outlook 2025’ highlights Nigeria’s anticipated GDP growth, rising consumer spending, and sustained remittance inflows amidst ongoing inflation challenges. The report underscores the critical role of remittances and digital payments in enhancing economic resilience and financial inclusion, as Nigeria navigates an evolving global landscape. Efforts to address inflationary pressures are essential to support sustainable growth in the future.
Original Source: www.mastercard.com
