FirstBank, one of Nigeria’s leading financial institutions, has expressed optimism about the country’s economic prospects in 2025.
Speaking at the bank’s annual Nigeria Economic Outlook event held in Lagos, Nigeria with the theme; Nigeria 2025: Path to Economic Rebound and Recovery, CEO Olusegun Alebiosu predicted a GDP growth rate of 3.68% for the year.
Alebiosu cited improving government revenues, fiscal position, and foreign reserve balances as indicators that the government’s reforms are yielding positive results.
He also commended the government’s proposed N49.7 trillion 2025 budget, saying it would provide sufficient economic stimulus.
He said: “As it is customary with us as a people, new years usually offer us an opportunity to review the past; reset individual and collective expectations and renew our hopes in the dream for a better future. This deep-seated optimism in the face of harsh realities is probably one of the hallmarks of being a “Nigerian” and you will agree with me that at no other time in our recent history has this optimism been seriously tested than in the outgone year 2024!
“Due to the impacts of some of the “painful but necessary” reforms that the Government had pursued, inflationary pressures exerted considerable strain on household and corporate incomes in 2024, with the inflation rate reaching a three-decades high of 34.60% in November 2024. In response, the Central Bank of Nigeria, through its Monetary Policy Committee (MPC), had steadily raised the benchmark Monetary Policy Rate (MPR) to 27.5% in a bid to tame inflationary pressures. The combination of these actions has resulted in significantly higher cost of living/operations and funding for households and corporates.”
Adding he said, “Nevertheless, the Nigerian Gross Domestic Products (GDP) grew steadily on a quarter-on-quarter basis in 2024, growing the most by 3.46% in Q3. Similarly, signs have begun to emerge that the reforms pursued by the Government are starting to yield the desired results. For example, the improving Government revenues and fiscal position (as suggested by the better revenue-to-debt service ratio at 68% and the growth in foreign reserve balances to over $40 billion) are indicators that our optimism as a people may not be in vain after all.
“In addition, early signs such as the stability that characterized the foreign exchange market on the back of the introduction of the electronic foreign exchange matching system in December 2024; the emergence of competition on the supply side of our nation’s downstream sector that is leading to falling prices in premium motor spirit (PMS) and the coming back on stream of the Port Harcourt & Warri refineries are indicative that there is, indeed, light at the end of the tunnel for us as a country.
“As a thorough-bred Nigerian myself, the sheer timing of the emergence of these developments has strengthened my optimism about the Nigerian economy, especially coming into the new year 2025.
Also, the Government’s proposed NGN49.7 trillion 2025 budget is expected to provide sufficient economic stimulus in view of the lower likelihood for poor budget implementation due to improving Government’s revenue position. Therefore, the projected GDP growth rate of 3.68% for 2025 is a very likely outcome.”
The FirstBank CEO assured customers that the bank would continue to support them with innovative products and services, helping them navigate the economic challenges and seize emerging opportunities.
“At FirstBank, we are committed to supporting our customers with innovative products and services that can help cushion and manage the impact of our economic realities as well as enabling our customers to convert distinct opportunities in the economy. As the premiere financial institution in Nigeria, having operated successfully for over 130 years, FirstBank has unparalleled local knowledge and capabilities that our customers can leverage to succeed in 2025 and beyond.”
Speaking about the theme, he said: “Nigeria 2025: Path to Economic Rebound & Recovery – reflect our institution’s understanding of the domestic economic realities, but more importantly, our readiness to partner with our customers to identify emerging opportunities within the economy to be properly equipped towards achieving both their personal and corporate goals in 2025.”
As a Bank that has done business in Nigeria over several economic cycles, he stated that FirstBank remains poised to walk with its customers through this difficult, yet promising, stage of the nation’s journey.
The event, which brought together stakeholders from various sectors, aimed to provide insights into Nigeria’s economic trends and conditions, helping individuals, businesses, and policymakers make informed decisions in the new year.
The FirstBank Nigeria Economic Outlook is an annual event designed by FirstBank to provide insights into the country’s economic trends and conditions, helping individuals, businesses, and policymakers make informed decisions in the new year. This economic outlook traditionally set the tone for the year, giving attendees the opportunity to hear directly from subject matter experts, be informed, and empowered to make the necessary business decisions in their personal or business lives as we start the new year.
