AfDB Says Nigeria’s Economic Reforms Yielding Fruits

The African Development Bank, AfDB, has said that the economic reforms embarked upon by the Federal Government since May 2023, have started yielding fruits as they have boosted the economy.
This was contained in the African Economic Outlook 2025 released Tuesday, by the AfDB at its ongoing Annual Meetings in Abidjan, Cote d’Ivoire, even as services contributed three-quarters of the growth to the country's Gross Domestic Product, GDP.
According to the report, the reforms, led to 13 percent industry growth, driven by higher oil production, which rose by 2.8 percent to 1.56 million barrels per day in 2024.
It also noted that agricultural production supported by competitive domestic prices contributed nine percent to GDP growth.
The report stated, “Demand was moderated by suppressed consumption due to higher prices. Market determined petrol prices increased 77 per cent and the Naira weakened 42 per cent during 2024.
“Both key underlying factors contributed to inflation, which stood at 33.2 per cent in 2024, up from 24.7 per cent in 2023.
“To dampen inflation pressures, the Central Bank of Nigeria (CBN) tightened the policy rate to 27.5 per cent.”
The report further stated that fiscal deficit of 3.9 per cent of GDP, which was marginally lower than 4.0 percent in 202, was largely driven by increased non-oil revenue.
“Public debt increased to 52.3 per cent of GDP in 2024 from 41.5  per cent in 2023,” it said, noting that, this was driven by a weaker Naira, that also, increased public borrowing.
The report stressed  that the current account surplus increased to 9.2 percent of GDP in 2024 from 1.6 percent of GDP in 2023 as higher import prices lowered imports, even as the financial services sector initiated recapitalisation to align with the trillion-dollar economy agenda, while financial stability improved.