The African Development Bank (AFDB) has praised the recent economic reforms of the Nigerian government, stating that the measures introduced since May 2023 begin to produce tangible results.
The recommendation occurred as part of Banco 2025's African economic perspective, published during its current annual meetings in Abidjan on Tuesday.
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According to the report on the economic reforms of Nigeria, the country's economy shows signs of recovery and renewed growth impulse, largely driven by structural reforms in key sectors. The services sector led the road, contributing approximately 75 percent to the growth of the country's Gross Domestic Product (GDP). The industry continued, representing 13 percent of the expansion of GDP, fueled by a 2.8 percent increase in oil production, which reached 1.56 million barrels per day in 2024.
The agricultural sector also made a notable 9 percent contribution to GDP growth, backed by competitive internal prices that stimulated production. However, the report indicated that domestic demand remained submitted due to inflation pressures triggered by higher prices.
“Gasoline prices determined by the market increased by 77 percent, while Naira depreciated by 42 percent in 2024. These factors contributed significantly to inflation, which rose to 33.2 percent in 2024, compared to 24.7 percent of the previous year,” the report said.
To combat inflation, the Central Bank of Nigeria (CBN) increased its monetary policy rate to 27.5 percent, a decisive movement intended to harden liquidity and stabilize the economy.
Despite the inflationary environment, fiscal performance improved marginally. The fiscal deficit fell to 3.9 percent of GDP in 2024, slightly below 4.0 percent in 2023, mainly driven by the increase in non -oil income. However, the report marked a worrying increase in public debt, which increased to 52.3 percent of GDP, compared to 41.5 percent in 2023. This increase was attributed to a weaker currency and a higher government loan.
On the external front, Nigeria registered a substantial improvement in the balance of its current account. The surplus increased to 9.2 percent of GDP in 2024, compared to 1.6 percent in 2023, helped by reduced import volumes as the highest global prices reduced demand.
The financial services sector also showed resilience, with several institutions that initiated the recapitalization efforts online with Nigeria's ambition to become an economy of billion dollars. Financial stability improved, as reflected in the decrease in loan rates without yield to 4.1 percent in mid -2024, 4.4 percent in 2023.
Meanwhile, the president of AFDB, Dr. Akinwumi Adesina, while talking previously in annual meetings, reflected on his leadership of the bank, which began in 2015. He described his possession as “a consumer mission but deeply satisfactory”, highlighting the record achievements of the institution under its surveillance.
The key milestones of the presidency of Adesina include increasing the capital base of the bank from $ 93 billion to $ 318 billion, supervising the largest refueling of the African Development Fund at $ 8.9 billion and delivering programs that have affected more than 565 million people throughout the continent.
He also emphasized the lasting impact of the strategic “high” strategic priorities of the bank: illuminating and power of Africa, feeding Africa, industrialize Africa, integrate Africa and improve the quality of life of people in Africa. These initiatives, said Adesina, have helped unlock opportunities and transform lives in Africa.
“These are not just figures, they are future. They are hopes,” he said.
As Nigeria continues to browse the complex land of economic reform, the support of the AFDB of the country's progress offers a strong vote of trust. With a continuous policy consistency and effective implementation, the report suggests that Nigeria is well positioned to strengthen its economic resilience and achieve sustainable and inclusive growth in the coming years.
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