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With Nigeria poised for significant economic transformations in 2025, Mr. Ugodre Obi-Chukwu, founder/CEO Niarametrics, has identified structural shifts, reforms, and external influences that will help drive the domestic economic.
Mr. Ugodre Obi-Chukwu, said Tuesday, during his paper presentation themed, Nigeria’s Macroeconomic Outlook 2025
• Nigeria in Transition: Reforms, Global Shifts, and Strategic Opportunities at the Finance Correspondents Association of Nigeria (FICAN) Bi-monthly forum in Lagos, that this key focus will galvanise growth and development.
According to him, one key area of focus is infrastructure development, particularly transportation projects that will spur the creation of new living areas and cities. “This, in turn, will attract investment and population shifts, driving economic growth.
Another critical reform is the Tax Bill, which is expected to be a net positive for businesses. This to him, will encourage states to court businesses to establish headquarters, leading to increased competition and improved governance.
“Consumer-driven growth will also play a crucial role in driving Nigeria’s economy forward. Accelerating consumer credit is essential to drive GDP growth through increased domestic spending.
However, while the country will also faces challenges, including tougher immigration policies that will make it harder for Nigerians to migrate abroad. This will create demand for domestic training, education, and talent development initiatives.
“Technological solutions, such as robotics and off-grid computing, will also help ease workforce challenges caused by migration.
In terms of external influences, Nigeria is expected to pivot towards Eastern markets, necessitating strategic currency swap deals. “The African Continental Free Trade Area (AfCFTA) will also face a stress test, potentially bolstered by China’s support for its success.
He further explained that, a GDP rebasing uplift is expected to trigger changes across sectors as the economy adjusts to its larger size. “This could lead to increased federal government borrowing, balancing opportunities against risks. Inflation rates may also decline, potentially reaching single digits”, He added.
In another breath, Ugodre Obi-Chukwu advocates for mandatory listing of companies handling major infrastructure projects in Nigeria, such as the Lagos-Calabar Coastal Highway, on the Nigerian Exchange Ltd. (NGX).
This move, he believes, would enhance capital formation for critical infrastructure development and promote broader wealth distribution across the country.
By listing these companies on NGX, Obi-Chukwu argues that it would unlock a new funding avenue for projects, allowing the public to invest and share in the collective wealth. This would also increase transparency and accountability in project financing and execution, ensuring Nigerians receive dividends from these projects and partake in the country’s economic growth.
Obi-Chukwu emphasizes that listing these companies would prevent wealth concentration among a few individuals, instead promoting a more equitable distribution of wealth. He notes that developed economies have robust capital markets, often exceeding their GDPs, whereas Nigeria’s capital market is valued at N60 trillion, significantly lower than its GDP of over 200 trillion.
Key Benefits of Mandatory Listing:
– Enhanced Capital Formation: Increased funding for critical infrastructure development
– Broader Wealth Distribution: More equitable distribution of wealth among Nigerians
-Increased Transparency and Accountability_: Improved project financing and execution
-Economic Growth_: Significant contribution to Nigeria’s economic growth
He added that, by listing infrastructure companies on NGX, Nigeria can promote economic growth, transparency, and accountability, ultimately ensuring a more equitable distribution of wealth among its citizens.
