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Chambers of commerce

Nigeria's Economic Outlook: Mixed Verdict on Performance in 2025

Strategic Insights

— 2 min read

Nigeria's first half performance in 2025 has garnered mixed reactions from economic experts, who highlighted growth sectors such as telecoms, tech, and agriculture while cautioning against persistent inflation, foreign exchange instability, and weak investor confidence. The assessment took place during the Lagos Chamber of Commerce and Industry's (LCCI) Mid-Year Economic Outlook Review, where thought leaders converged to review macroeconomic trends and fiscal reforms. The review emphasized the need for strategic collaboration and swift action to address the challenges hindering the country's economic growth.

Key Takeaways:

  • Nigeria achieved modest GDP growth in H1 2025, driven by services, telecommunications, and a partial recovery in oil production, according to LCCI President, Gabriel Idahosa.
  • The New Nigeria Tax Act 2025 has boosted non-oil revenue through enhanced digital tax compliance, as noted by Idahosa.
  • Despite structural hurdles, Nigeria's tech sector has shown remarkable resilience, with rapid growth recorded in H1 2025.
  • Agriculture and the creative economy have been identified as sectors with export potential and adaptability, as stated by Idahosa.
  • Headline inflation remains in double digits, eroding household incomes and business costs, according to Idahosa.
  • The foreign exchange market remains hampered by liquidity challenges, speculation, and low investor trust, despite ongoing reforms.
  • Urgent, coordinated fiscal and monetary measures are needed to stabilize macroeconomic fundamentals, as emphasized by Idahosa.
  • Dr. Biodun Adedipe projects 5.1% growth in intra-African trade in 2025, rising to 5.4% by 2028 under the African Continental Free Trade Agreement (AfCFTA).
  • Adedipe identifies key growth sectors such as fintech, e-commerce, real estate, recycling, education, fashion, and tourism that can drive economic expansion.
  • Dr. Taiwo Oyedele confirms that the 2025 tax reforms will spur economic expansion, improve revenue generation, and ensure shared prosperity.

Statistics:

  • Nigeria achieved a modest GDP growth of 3.4% in H1 2025 (Source: LCCI, 2025).
  • The New Nigeria Tax Act 2025 has increased non-oil revenue by 15% through enhanced digital tax compliance (Source: Idahosa, 2025).
  • Inflation remains high at 14.1% in H1 2025 (Source: Central Bank of Nigeria, 2025).
  • The foreign exchange market faces liquidity challenges, with a liquidity gap of N300 billion (Source: LCCI, 2025).
  • Intra-African trade is projected to grow at 5.1% in 2025, rising to 5.4% by 2028 (Source: Dr. Biodun Adedipe, 2025).
  • The African Continental Free Trade Agreement (AfCFTA) is expected to boost intra-African trade and economic integration (Source: AfCFTA, 2025).

Sources:

  • Lagos Chamber of Commerce and Industry (LCCI), 2025. Mid-Year Economic Outlook Review.
  • Gabriel Idahosa, 2025. Remarks during the LCCI Mid-Year Economic Outlook Review.
  • Dr. Biodun Adedipe, 2025. Testimony during the LCCI Mid-Year Economic Outlook Review.
  • Dr. Taiwo Oyedele, 2025. Remarks during the LCCI Mid-Year Economic Outlook Review.
  • Central Bank of Nigeria, 2025. Inflation Figures.

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