Steady GDP growth on horizon: First Bank predicts Nigeria’s 2025 comeback

By Grace Alegba

First Bank of Nigeria Ltd. has projected steady economic growth for Nigeria in 2025, crediting the positive outlook to bold economic reforms implemented in 2024, including the removal of fuel subsidies.

The bank’s Managing Director and Chief Executive Officer, Mr Olusegun Alebiosu, made this assertion during his opening remarks at the 2025 Nigeria Economic Outlook event, organised by First Bank on Wednesday in Lagos.

Alebiosu described 2024 as a transformative year for Nigeria’s economy, calling it a “year of miracles” due to long-awaited reforms that many thought impossible.

“The fight to remove fuel subsidies seemed impossible for almost 40 years. I never believed, in my lifetime, that Nigeria would achieve this,” Alebiosu remarked during the hybrid event, which he joined virtually.

While acknowledging the initial discomfort caused by the subsidy removal, he noted that it has led to a gradual reduction in the price of premium motor spirit (PMS) and a ripple effect of economic growth.

He praised the resilience of Nigerians and emphasised that the reforms, though challenging, were necessary to address inflationary pressures that strained households and businesses throughout 2024.

The inflation rate surged to a 30-year high of 34.6% in November 2024, prompting the Central Bank of Nigeria (CBN) to raise the Monetary Policy Rate (MPR) to 27.5%.

Despite these challenges, Alebiosu highlighted steady GDP growth, with a 3.46% increase recorded in the third quarter of 2024.

He also credited the introduction of an electronic foreign exchange matching system in December 2024 for stabilising the forex market, further signalling early growth prospects for 2025.

Other indicators of progress include increased competition in the downstream oil sector, leading to declining PMS prices, and the revitalisation of the Port Harcourt and Warri refineries.

“These signs show that the reforms pursued by the government are beginning to yield the desired results,” he stated.

With a proposed N49.7 trillion budget for 2025, Alebiosu expressed optimism that the projected GDP growth rate of 3.68% would be achievable.

“As a bank that has navigated Nigeria’s economic cycles for decades, First Bank remains committed to walking alongside our customers during this challenging yet promising phase of our nation’s journey,” he added.

The bank’s 2025 theme, “Nigeria 2025: Path to Economic Rebound and Recovery,” underscores its dedication to addressing domestic economic realities and partnering with clients to identify emerging opportunities.

“First Bank is poised to support its customers with innovative products and services to help them seize opportunities and succeed in 2025 and beyond,” Alebiosu concluded. (NAN)