The Mastercard Economics Institute’s “Economic Outlook 2025” projects Nigeria’s GDP growth at 2.9%, with consumer spending increasing by 6% and inflation at 22.1%. The report emphasizes the role of remittances and digital payments in supporting economic resilience, despite ongoing challenges in the economic landscape.
On March 11, 2025, the Mastercard Economics Institute released its annual report, “Economic Outlook 2025,” highlighting key trends that will influence Nigeria’s economy. The report forecasts a 2.9% year-over-year GDP growth for Nigeria, slightly trailing the global average of 3.2%. Consumer spending is expected to increase by 6%, though consumer price inflation remains a challenge at 22.1%.
The resilience of Nigeria’s economic landscape is attributed to strong remittance inflows, supporting household incomes and driving consumer consumption. Despite enduring significant challenges due to inflation and currency volatility, Nigeria’s youthful population is likely to sustain robust spending, although households are prioritizing essential goods and services over non-essentials.
Migration has played a critical role in shaping the Nigerian economy, resulting in increased remittances that benefit low- and middle-income families. The World Bank reports a dramatic rise in global remittances, expected to continue into 2025, thanks to local reforms and economic recovery. The digitization of payment systems enhances the efficiency of these transactions, making them more secure and accessible.
Khatija Haque, Chief Economist for EEMEA at Mastercard, emphasized that “Nigeria’s economic outlook for 2025 highlights the country’s resilience and potential for growth, driven by remittance inflows and consumer spending.” In line with this, Folasade Femi-Lawal, Country Manager for Mastercard Nigeria, noted, “Remittances play a pivotal role in driving economic resilience” and affirmed the company’s commitment to enhancing contactless payment solutions to support Nigeria’s economy.
The report indicates that inflation remains a significant concern, though a moderation in inflation rates from 33% in 2024 is anticipated. Ongoing financial inclusion efforts via digital payments will provide underserved communities with access to essential financial services, facilitating broader economic participation. Thus, the report underscores the importance of adapting fiscal policies to navigate the evolving economic environment effectively.
To prepare for the future, stakeholders must focus on fostering financial inclusion and addressing inflationary challenges to sustain Nigeria’s economic growth amid changing global landscapes. Through the integration of innovative payment solutions, Nigeria can leverage its economic strengths, ensuring secure and efficient financial transactions for all citizens.
The Mastercard Economics Institute’s “Economic Outlook 2025” underscores Nigeria’s economic growth prospects amidst substantial challenges, particularly inflation. The report highlights the significant role of remittances in bolstering household incomes and driving consumer spending. Moreover, the burgeoning digital payments landscape is pivotal for enhancing financial inclusion and economic participation. Stakeholders are urged to prioritize strategies that address inflation while leveraging the country’s youthful demographic and remittance-driven resilience to promote sustainable economic development.
Original Source: www.mastercard.com
