“Nigeria’s Consumer Spending to Rise by 6% in 2025 Despite Inflation – Report”

A new report by the Mastercard Economics Institute has projected that Nigerian household spending will increase by 6% in 2025, despite ongoing economic challenges, including high inflation and currency volatility.

The report, titled “Economic Outlook 2025,” also forecasts that Nigeria’s GDP will grow by 2.9% year-on-year, while inflation is expected to slow down to 22.1%, offering a glimpse of economic stability in the coming year.

According to the report, Nigeria’s economic resilience will be driven by:
1.Strong remittance inflows – Money sent by Nigerians abroad will continue to support household incomes and drive spending.
2. A youthful population – With a large, energetic workforce, economic activities remain vibrant.
3. Digital payments & financial inclusion – The rise of mobile money and digital payment solutions is transforming the economy.

Khatija Haque, Chief Economist for EEMEA at Mastercard, highlighted the country’s potential, stating:

“Nigeria’s economic outlook for 2025 highlights the country’s resilience and potential for growth, driven by remittance inflows and consumer spending. These trends underscore the importance of fostering financial inclusion and addressing inflationary pressures to support sustainable development.”

While inflation is projected to ease from 34% in 2024 to 22.1% in 2025, it still poses a challenge for households. Consumers are expected to prioritize essential goods and services over luxury or discretionary spending.

The report underscores the critical role of remittances in stabilizing Nigeria’s economy, noting that global remittances have surged from $128 billion in 2000 to $857 billion in 2023.

Folasade Femi-Lawal, Country Manager for Mastercard Nigeria, emphasized the impact of migration and digital payments:

“Remittances play a pivotal role in driving economic resilience, and Mastercard Nigeria is committed to enhancing contactless payment solutions to simplify transactions, boost security, and reduce costs.”

With migration shaping Nigeria’s economic landscape, the adoption of mobile money and digital payment solutions is making remittance transfers more accessible, cost-efficient, and secure, ultimately boosting financial inclusion for underserved communities.

As 2025 approaches, the report suggests that Nigeria will navigate inflation and economic fluctuations through strategic monetary and fiscal policies. However, consumer behavior will continue shifting, with spending focused on essentials rather than luxury items.

With continued investment in digital financial services, remittance infrastructure, and economic reforms, Nigeria’s economy could see steady growth despite ongoing challenges.