The Mastercard Economics Institute’s *Economic Outlook 2025* projects Nigeria’s GDP to grow by 2.9%, consumer spending to rise by 6%, and inflation to moderate to 22.1%. Key drivers include remittance inflows and digital payment advancements, helping navigate economic challenges while emphasizing the need for financial inclusion.
On March 11, 2025, the Mastercard Economics Institute released its annual report, Economic Outlook 2025, highlighting key themes likely to influence Nigeria’s economy. The report indicates that Nigeria’s GDP is anticipated to grow by 2.9% year-over-year, slightly lower than the projected global average of 3.2%. Despite facing challenges, consumer spending is expected to rise by 6%, while consumer price inflation is likely to decrease to 22.1%.
Remittance inflows are a critical driver of economic resilience in Nigeria, sustaining household incomes and consumption patterns. The country’s ability to adapt to global and regional economic shifts while leveraging human capital underscores its potential for growth. Khatija Haque, Chief Economist for EEMEA at Mastercard, remarked on Nigeria’s resilience, focusing on remittances and the necessity of financial inclusion to support development.
Folasade Femi-Lawal, Country Manager for Mastercard Nigeria, emphasized the importance of remittances in enhancing economic stability. She noted the company’s commitment to improving contactless payment solutions to facilitate secure and cost-effective transactions. The Mastercard report outlines key economic trends, such as inflationary pressures due to currency volatility and supply chain challenges, particularly in the aftermath of the pandemic.
Despite these inflation challenges, consumer spending is projected to grow, fueled by Nigeria’s youthful population and robust informal economy. The report also highlights migration trends, which have led to increased remittance flows, providing crucial financial support for many households in Nigeria. Digital payment solutions are pivotal in improving remittance efficiency, accessibility, and security, enhancing financial inclusion within the country.
The Economic Outlook 2025 report is informed by various public and proprietary data sources, including Mastercard’s anonymized sales activity data, aimed at better understanding economic activity and trends.
The *Economic Outlook 2025* report from Mastercard highlights Nigeria’s projected economic growth driven by remittances and increasing consumer spending despite high inflation. The emphasis on digital payments offers significant improvements in transaction security and accessibility, fostering financial inclusion. As Nigeria navigates economic challenges and opportunities, strong support for household incomes through remittances will be vital for sustainable growth.
Original Source: www.mastercard.com