The Centre for the Promotion of Private Enterprise (CPPE) has released its economic projections 2025.

In a statement titled Nigeria 2024 Economic Review and 2025 Economy Outlook made available to Legit.ng, Muda Yusuf, the Chief Executive Director of CPPE, said he expects Nigeria’s inflation rate to moderate slightly in 2025.

According to the CPEE's projections, Nigeria's inflation rate may moderate slightly on the expected reduction of the exchange rate volatility and possible rebound of the naira.

The economic think tank group also said global oil prices are expected to rise in 2025 under President Donald Trump’s presidency in the United States.

The CPEE foresees a more positive development on the energy front, especially following the increased capacity for domestic refining of petroleum products, Vanguard reports.

The statement reads: “Inflation may moderate slightly on the expected reduction of the volatility of the exchange rate and possible rebound of the naira.

“Moderation in energy cost as the geopolitical tension eases as a result of the impact of the Trump presidency.

"There is a likely boost in global oil production as the USA increases production and the embargo on Russia eases. These are likely outcomes of Trump’s presidency."

More projections for 2025

The think tank also expressed concern over electricity tariffs and noted that it would remain a tricky issue in 2025.

It said: "The economy is too fragile to absorb the shocks of a fully deregulated or commercial electricity market.

"The outlook for the sector remains a major cause for worry in 2025. There are also the transition challenges of the states taking up regulatory responsibilities for electricity market. Not many states have the capacity to manage this transition.

"This is therefore a major source of risk for the electricity sector in 2025."

The centre also provided insight into what businesses could face in 2025.

According to CPPE, Businesses would have to worry about various risks in crafting their strategies for 2025.

The level of exposure to these risks differs across sectors, necessitating businesses to adjust their strategies accordingly. These risks encompass forex volatility, interest rate fluctuations, inflation, financial and monetary policy changes, regulatory challenges, cybersecurity threats, insecurity, political instability, corruption and environmental or climate change concerns.

In a related development, Nigerians have been informed by President Bola Ahmed Tinubu that the naira will perform better in 2025.

According to the president, he expects the naira exchange rate to drop to N1,500/$1 in 2025. Other high expectations expressed during the presentation of the 2025 national budget include that the inflation rate will fall below 20%.