Consumer spending to rise by 6%, inflation 22.1% – Report

The Mastercard Economics Institute yesterday released its ‘Economic Outlook 2025’ with Nigeria’s gross domestic product (GDP) projected to grow by 2.9% year over year, slightly below the global average which is forecast at 3.2.%, reflecting the challenges and opportunities within one of Africa’s largest economies.

Daily Trust however reports that the National Bureau of Statistics (NBS) reported that Nigeria’s GDP grew by 3.84 per cent (year-on-year) in real terms in the fourth quarter of 2024.

But the Mastercard report further predicted consumer spending in the country to rise by 6%, despite elevated consumer price inflation of 22.1%, which continues to present challenges for households and businesses.

The consumer spending, the report said, would be driven by the country’s youthful population and robust informal economy.

However, high inflation continues to influence purchasing behavior, with households prioritising essential goods and services over discretionary spending.

According to the report, economic growth is driven by robust remittance inflows, which sustain household incomes and consumption.

It noted that Nigeria’s economy demonstrates resilience amid global and regional shifts, leveraging its human capital and remittance ecosystem to navigate challenges.

“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,” said chief economist, EEMEA, Mastercard, Khatija Haque.

Folasade Femi-Lawal, Country Manager and Area Business Head for West Africa also added that 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.

“Our efforts are aimed at fostering an inclusive financial ecosystem, ensuring seamless, secure payments that support Nigeria’s vibrant economy,” she added.