President Bola Tinubu’s economic reforms have sparked significant growth in Nigeria’s economy, according to the African Development Bank’s (AfDB) newly released African Economic Outlook 2025.

The report, unveiled at the AfDB’s annual meetings in Abidjan, credited the country’s economic rebound to key policy shifts introduced since Tinubu took office in May 2023.

“Services contributed three-quarters of Nigeria’s GDP growth,” the AfDB stated, highlighting the resilience of the sector amid ongoing structural reforms.Industry accounted for 13% of GDP growth, largely driven by a 2.8% rise in oil production, which climbed to 1.56 million barrels per day in 2024.

Meanwhile, agriculture added 9%, supported by competitive local prices.Despite these gains, the report noted inflationary pressures, citing a 77% increase in petrol prices and a 42% depreciation of the naira in 2024.“Demand was moderated by suppressed consumption due to higher prices,” the report said, with inflation hitting 33.2% in 2024, up from 24.7% the previous year.

In response, the Central Bank of Nigeria tightened the policy rate to 27.5% to manage inflation.The fiscal deficit narrowed slightly to 3.9% of GDP in 2024, down from 4.0% in 2023, bolstered by rising non-oil revenue.

However, public debt rose sharply to 52.3% of GDP, up from 41.5% in 2023, due to a weaker naira and increased borrowing.On a brighter note, the current account surplus jumped to 9.2% of GDP, from 1.6% in 2023, as costly imports reduced in volume.

The AfDB also noted progress in Nigeria’s banking sector, stating, “The financial services sector initiated recapitalisation to align with the trillion-dollar economy agenda,” while non-performing loan ratios dropped to 4.1% in mid-2024.

The outlook, while cautiously optimistic, suggests that Tinubu’s reforms are gradually stabilising key sectors and boosting investor confidence—despite mounting inflation and debt challenges.