AfDB
May 27, 2025
Nigeria’s economy is projected to grow at a slower pace with its real Gross Domestic Product (GDP) growth at 3.2 per cent in 2025 and 3.1 per cent in 2026.
The African Development Bank (AfDB) made these projections in its 2025 African Economic Outlook released on Tuesday at its ongoing 2025 Annual Meetings in Abidjan, Côte d’Ivoire.
According to the report, the projections marks a downward revisions from earlier projections by the bank.
The AfDB said that the slowdown was mainly due to reduced demand from key trading partners like the United States and China; global supply chain disruptions and increased volatility in financial markets.
It said that unlike most West African countries expected to grow at five per cent or more in 2025, Nigeria, along with Ghana and Sierra Leone, was set to lag behind.
Across the continent, the report said that Africa’s economic growth improved marginally to 3.3 per cent in 2024, up from 3.0 per cent in 2023, driven by government spending and private consumption.
It, however, cautioned that persistent inflation, currency depreciation, high debt servicing costs, and geopolitical tensions continued to threaten the fragile recovery.
The report said that recent trade tensions, including tariffs imposed by the United States and retaliatory measures, had deepened uncertainties and negatively impacted commodity prices and financial markets.
“As a result, Africa’s growth outlook has been revised downwards to 3.9 per cent in 2025 and 4.0 per cent in 2026.
“In spite these challenges, 21 African countries are expected to achieve growth above five per cent in 2025.
“Notably, Ethiopia, Niger, Rwanda, and Senegal could surpass the seven per cent growth threshold needed to drive poverty reduction and sustainable development.
“Regional variations however remains significant,” it said.
The report projected East Africa to accelerate growth to nearly six per cent, while Central and North Africa face downward revisions due to conflicts and declining exports.
It said that Southern Africa’s growth remained subdued, with South Africa expected to record modest recovery.
The AfDB reiterated that Africa’s per capita GDP growth, although improving, remained below global averages but continued to hold promise for long-term economic resilience.(NAN)
