Financial analysts and economic experts are optimistic about a stronger value of the Naira against the US dollar, alongside a reduction in petrol prices in Nigeria in 2025.
This positive outlook is driven by expectations of increased foreign exchange inflows and reduced fuel imports, which are anticipated to ease pressure on the currency and stabilize petrol prices.
Analysts predict that the combination of higher oil production, an increase in domestic refining capacity, and strategic economic reforms will contribute to the appreciation of the Naira. These developments are also expected to ease the cost of Premium Motor Spirit (PMS), reflecting global oil price trends and the government’s energy sector interventions.
The Naira’s anticipated strengthening is seen as part of broader fiscal and monetary reforms aimed at stabilizing the economy. Experts believe that successful implementation of these reforms, coupled with favorable global market conditions, will reduce inflation and improve economic conditions.
Banks are expected to accelerate their recapitalization efforts in the lead-up to the March 2026 deadline set by the Central Bank of Nigeria (CBN). The insurance sector is also set to undergo similar restructuring next year after the Consolidated Insurance Bill is passed into law, which is expected to provide a significant boost to the sector.
The Nigerian government’s efforts to bridge a projected budget deficit through increased borrowing, alongside the ramp-up of domestic oil refining capacity, are expected to have positive ripple effects on inflation and the broader economy. The government’s 2025 budget aims to reduce inflation from 34.6% to 15% and strengthen the Naira from approximately N1,700 to N1,500 per US dollar.
Leading financial experts, including Bismarck Rewane of Financial Derivatives Company, have predicted that the Naira will appreciate gradually in 2025, reaching around N1,550 per dollar by the first quarter. This is expected to coincide with a stabilization of fuel prices due to increased local production, including the commencement of operations at the Dangote Refinery, which is expected to reduce the nation’s reliance on imported fuel.
In the energy sector, the government’s ongoing efforts to address power sector challenges and the continued alignment of fuel prices with global market rates are expected to reduce transportation costs. The reduction in petrol prices, following deregulation, is also projected to have a positive impact on the manufacturing sector, as the costs of production and logistics are expected to decrease.
Experts from the Centre for the Promotion of Private Enterprise (CPPE) and the Manufacturers Association of Nigeria (MAN) are optimistic that 2025 will bring much-needed relief, with a more stable foreign exchange environment and improved energy prices. With growing consumer and business confidence, these reforms are expected to contribute to positive economic growth and a more resilient manufacturing sector.
As the Nigerian economy prepares for 2025, experts predict that the outlook for the year is shaped by a combination of fiscal discipline, improved foreign exchange management, and structural reforms aimed at boosting domestic production and reducing inflationary pressures.
