Market News

BY Ifeoluwa Adebayo 

The Nigerian-American Chamber of Commerce (NACC) says Nigeria’s economic growth hinges on the successful implementation of key reforms and prioritisation of growth in the agriculture, technology, services, and infrastructure sector.

This was revealed in the recently held breakfast meeting in Lagos, where experts shared insights on Nigeria’s economic outlook for 2025.

Tola Adeyemi, managing partner at KPMG Nigeria, stressed that Nigeria’s 2025 economic growth hinges on implementing a budget that promotes expansion and enacting tax reforms to boost revenue and stimulate economic activity.

In the third quarter of 2024, debt stock stood at N142.3 trillion amidst growing fiscal deficits as debt-servicing payments are expected to further surge with the Eurobond recently issued to raise $2.2 billion which was over-subscribed.

“While Nigeria’s debt-based GDP remains within the sustainable threshold, greater fiscal discipline and revenue management like those in the Tax Reform Bills are critical. Defaulting on debt would mean loss of access to the market, higher borrowing costs, and a debt trap that could setback development,” Adeyemi said.

He added that the potential to redefine governance in Nigeria is by decentralising tax administration, empowering State and Local governments which could lead to a shift toward more accountable and responsive leadership, fostering economic self-reliance, and encouraging states to leverage their unique resources.

“Addressing food shortages, structural issues, and other challenges could lead to interest rate cuts, although borrowing costs are likely to remain high. However, to sustain economic growth, it’s important to identify effective strategies for boosting external reserves, restoring investor confidence, increasing export revenue, and achieving a trade surplus,” Adeyemi said.

He emphasised that key sectors such as agriculture, real estate, construction, power, and renewable energy, are poised to undergo significant growth driven by strategic reforms. To achieve this, embracing AI and technological advancements is one of its crucial steps, particularly as Nigeria transitions from service-driven growth to growth driven by real sectors.

Wofai Samuel, acting director-general of NACC stated that Nigeria is poised to become a leading economy in Africa by 2025. However, this achievement hinges on the successful implementation of economic reforms and the strategic development of key sectors such as Agriculture, Technology, Services Sector, and Infrastructure.

“The global oil market, and global geopolitics during President Trump’s Presidency will play a pivotal role and Nigeria is not excluded from the outcomes of the policies, especially on Foreign Direct Investment that the new U.S. Administration will be creating,” she said.

According to Ehi Braimah, deputy president of the Chamber, the Nigerian-American Chamber of Commerce (NACC) is the first and oldest bilateral Chamber of Commerce in Nigeria.

He said the Chamber continues to facilitate and promote bilateral trade relations between Nigeria and the United States through networking, advocacy, and trade services.

“NACC is positioned to take advantage of emerging opportunities in new growth areas of the value chain of strategic sectors by leveraging its influence to push for strategic sector reforms to accelerate economic growth and development,” he added.