The 2025 Economic Outlook by Mastercard predicts 2.9% GDP growth in Nigeria, with consumer spending rising by 6% despite a 22.1% inflation rate. A significant increase in remittances is supporting household incomes amid economic challenges. The report emphasizes the importance of financial inclusion and digital payment advancements for sustainable development.
The Mastercard Economics Institute has released its 2025 Economic Outlook, focusing on Nigeria’s economic landscape. The report predicts a GDP growth of 2.9% year-over-year, slightly below the global average of 3.2%. Consumer spending in Nigeria is anticipated to increase by 6%, despite an expected consumer price inflation rate of 22.1%, posing challenges for individuals and businesses alike.
A significant driver of economic growth is the rise in remittances that bolster household incomes and consumption, showcasing Nigeria’s resilience amidst global shifts. The report emphasizes the critical role of human capital and a robust remittance ecosystem in navigating the current challenges. Chief Economist Khatija Haque noted that these trends illustrate the necessity of financial inclusion to mitigate inflation pressures and support sustainable development.
Folasade Femi-Lawal, Country Manager for Mastercard Nigeria, highlighted that remittances are vital for economic resilience. Mastercard aims to enhance contactless payment solutions, aiming for increased transaction security and reduced costs to support Nigeria’s economy effectively.
Despite ongoing challenges with inflation resulting from currency volatility, Nigeria’s consumer spending continues its upward trend, primarily due to its youthful demographic and strong informal sector. The report indicates that households increasingly prioritize essential goods in their purchasing decisions amid inflationary pressures.
Remittance flows have surged, significantly impacting low- and middle-income communities, with global remittances reaching $857 billion in 2023, anticipated to grow by 3% into 2025. The digitization of the payment industry is essential for enhancing remittance efficiency, making transactions more secure and accessible for the population.
Supported by various data sources, including Mastercard sales activity models, the report provides insights into how digital payments can foster financial inclusion and contribute to broader economic participation. This aligns with Mastercard’s commitment to building a sustainable economy through enhanced access to innovative financial solutions.
The Mastercard Economics Institute’s report illustrates Nigeria’s economic trajectory, projecting moderate GDP growth alongside rising consumer spending despite high inflation. The prominence of remittances underscores their crucial role in economic stability and development. With continued investment in digital payment solutions and financial inclusion, Nigeria can harness its economic potential and navigate ongoing challenges effectively.
Original Source: www.mastercard.com
