Economist Bismarck Rewane highlights the importance of power sector reforms in achieving Nigeria’s 2025 economic growth targets. Explore insights on inflation, Naira stability, and GDP forecasts. Prominent economist and CEO of Financial Derivatives Company Limited (FDC), Bismarck Rewane, has projected that power sector reforms will be crucial to achieving Nigeria’s 4.6% economic growth target for 2025. In an in-depth interview, he provided insights into inflation trends, currency valuation, and factors influencing the country’s economic trajectory. Inflation Projection for 2025: Why Lower Rates Are Unlikely Rewane anticipates a 25% inflation rate in 2025, despite the Federal Government’s optimistic projection of 15%. He explains that inflation is historically persistent, with November 2024’s figure reaching 34.6% and a marginal increase expected for December. While inflationary growth may decelerate, significant reductions depend on increased productivity and faster GDP growth, as inflation results from limited supply relative to cash circulation. Rewane highlights that the Central Bank of Nigeria (CBN) is working to control liquidity by reducing excess cash flow. However, he cautions that a substantial drop in inflation would require consistent productivity growth, emphasizing the gap between public expectations and economic realities. Naira Exchange Rate Forecast: Stabilization Predicted Regarding currency valuation, Rewane predicts the Naira will appreciate to ₦1,550 per US dollar by early 2025. His projection is based on improving economic equilibrium, where the gap between the official and parallel market exchange rates has narrowed. Other contributing factors include: He further explains that the Naira remains undervalued, but with cautious optimism, a 10% appreciation is feasible under current monetary policies and stable commodity prices. Banking Sector: Reduced Profitability Expected in 2025 The Nigerian banking sector, which experienced significant profits due to exchange rate gains in 2024, is expected to face lower profitability in 2025. Rewane predicts that the current exchange rate gains will reverse, leading to potential losses for banks. Increased market competition and the ongoing recapitalization efforts will further pressure profit margins. He emphasizes that while the banking sector will remain vital for economic activities, its relative influence will decline due to heightened rivalry and evolving market conditions. GDP Growth Projections and Power Sector Reforms Rewane views the Federal Government’s 4.6% GDP growth target for 2025 as achievable but emphasizes the urgent need for power sector reforms. He asserts that resolving issues within the power sector could potentially elevate GDP growth to 6% or higher. Key recommendations for reform include: Without these changes, Rewane cautions that growth may remain stagnant at around 2.5%, which would merely match Nigeria’s population growth, limiting economic advancement. Key Surprises and Risks in 2025 Rewane differentiates between growth and development, emphasizing the need for both physical and institutional infrastructure. He calls for: He stresses that while physical infrastructure such as roads and bridges remains essential, institutional frameworks are equally critical for sustainable development. Accountability, both financial and moral, must be upheld to drive Nigeria’s progress effectively. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
The Naira witnessed a slight appreciation in the parallel market, climbing to N1,660 per dollar, compared to its previous value of N1,662 per dollar recorded last weekend. Meanwhile, in the official foreign exchange market, the Naira experienced a decline, depreciating to N1,550 per dollar. According to data released by the Central Bank of Nigeria (CBN) via the Daily Nigerian Foreign Exchange Market (NFEM) report, the indicative exchange rate for the Naira dropped to N1,550 per dollar, a N10 decline from the N1,540 per dollar rate recorded last weekend. Additionally, information from FMDQ Securities Exchange revealed a further depreciation in the indicative exchange rate, falling to N1,545.1 per dollar compared to N1,533 per dollar as of last week Friday. As a result, the gap between the parallel market rate and the NFEM rate reduced to N110 per dollar, a significant improvement from the N122 per dollar margin reported last week Friday. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Kindly Share:
Human rights lawyer Inibehe Effiong has called for Pastor Enoch Adeboye, the General Overseer of the Redeemed Christian Church of God (RCCG), to retire following his recent controversial remarks. Effiong criticized Adeboye’s claim that God intervened to prevent the naira’s exchange rate from rising to N10,000 to $1, describing it as absurd. Effiong argued that prayers have no influence on the exchange rate, which is instead determined by a country’s economic policies, monetary strategies, and productivity. In a post on X (formerly Twitter), Effiong wrote: “Pastor Adeboye should retire and step down. His statements about the state of the nation are offensive to reasonable people. It’s important to know when to exit, and Adeboye’s continued support of this inept and oppressive government is a disservice to Christianity.” He continued, “Many Nigerians have stopped attending church because of the hypocrisy and complicity of religious leaders like Adeboye. President Tinubu has spent billions on fuel subsidies despite his previous promises, and his government has done nothing to address the widespread corruption in the oil sector. We are not all easily deceived.” Effiong further criticized Adeboye’s assertion that his prayers were responsible for preventing further devaluation of the naira. He emphasized that exchange rates are influenced by tangible economic factors, not prayer. “Adeboye has been praying for Nigeria and its leaders for years, yet things remain unchanged. Either his prayers are ineffective, or God is not answering him,” Effiong said. He concluded by pointing out that some of the most corrupt politicians in Nigeria are followers of Adeboye. “He needs to take a good look at himself in the mirror,” Effiong added. READ ALSO: Without divine intervention, the exchange rate would have skyrocketed to #10,000 for $1 – Pastor E. A Adebole
Kindly Share:
Pastor E. A. Adeboye, the revered General Overseer of the Redeemed Christian Church of God (RCCG), recently emphasized the importance of divine intervention in stabilizing Nigeria’s economy, particularly its exchange rate. In a heartfelt statement, he highlighted that without God’s intervention, the value of the naira could have experienced a drastic plunge, potentially reaching an alarming rate of ₦10,000 to $1. Pastor Adeboye pointed out that the economic challenges facing the nation are immense and have been worsened by global and local pressures, which include inflation, policy shifts, and economic mismanagement. Such challenges could lead to dire consequences if not managed carefully. He emphasized that while policymakers and economic experts play significant roles, the fate of the nation is also intertwined with divine favor. The pastor’s comments underscore the essential balance between practical efforts by the government and the power of collective faith and prayer. He urged citizens to continue to pray fervently for the country’s economic stability and to seek divine guidance to help steer the nation back on a path of growth and sustainability. This message served as a reminder to many that beyond the technicalities of economics, a nation’s progress is also shaped by its spiritual and moral fabric. According to Pastor Adeboye, maintaining faith, unity, and steadfast hope is crucial for overcoming obstacles and securing a prosperous future for Nigeria. READ ALSO: Edo Governor Okpebholo Freezes All State-Owned Bank Accounts: Here’s Why
