Mastercard projects 2.9% GDP growth for Nigeria

Nigeria’s economy is projected to grow by 2.9 per cent in 2025, slightly below the global average of 3.2 per cent, according to the Economic Outlook 2025 report released by the Mastercard Economics Institute.

Despite ongoing economic pressures, including elevated inflation, the report obtained on Wednesday highlights Nigeria’s resilience, driven largely by strong remittance inflows that continue to support household incomes and consumer spending.

Consumer spending in Nigeria is expected to rise by six per cent in 2025, even as inflation remains high, presenting challenges for businesses and households.

The report noted that while inflationary pressures persist, Nigeria’s economy is leveraging its human capital and remittance ecosystem to sustain growth.

The Nigerian economy continues to demonstrate adaptability amid global and regional shifts. Remittances play a critical role in maintaining household consumption, helping to offset some of the challenges posed by inflation, the report stated.

The Chief Economist, EEMEA, Mastercard, Khatija Haque, stated, “Nigeria’s economic outlook for 2025 highlights the country’s resilience and potential for growth, driven by remittance inflows and consumer spending.

These trends underscore the importance of fostering financial inclusion and addressing inflationary pressures to support sustainable development.”

The Country Manager and Area Business Head for West Africa, Folasade Femi-Lawal, stated, “Remittances play a pivotal role in driving economic resilience, and Mastercard Nigeria is committed to enhancing contactless payment solutions to simplify transactions, boost security, and reduce costs. Our efforts are aimed at fostering an inclusive financial ecosystem, ensuring seamless, secure payments that support Nigeria’s vibrant economy.”