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A recent projection indicates that Nigerians will likely continue to bear the brunt of high commodity prices, with inflation expected to remain elevated throughout the first two quarters of 2025.

According to a report by Proshare obtained by The Guardian, Nigeria’s foreign reserves must rise significantly to combat domestic inflation. The report states that “until Nigeria’s foreign reserves rise significantly, domestic inflation will remain a challenge, regardless of the number of times and how high the Central Bank of Nigeria (CBN) raises its Monetary Policy Rate (MPR).

To bring domestic inflation closer to the CBN’s desired target rate of 21%, the country’s foreign reserves must increase by at least 50% to $60 billion, unconstrained by forward obligations. Improving the FX reserve would relieve domestic inflationary pressure and create fresh production opportunities for the private sector, as credit expansion supports private sector growth.

The report notes that the growth of the private sector would improve job creation and close the citizens-government trust deficit. However, the current economic situation is challenging, as evidenced by the CBN’s Purchase Managers Index (PMI), which has declined for two consecutive months and is below 50.

To address these challenges, the report recommends that the federal government sell off idle public assets, securitize, and financialize them to improve foreign reserves and relieve pressure on the domestic debt market. This would reduce the cost of public and private sector borrowing and bring down domestic inflation.

The report emphasizes the need for fresh thinking and a new vision to unlock prosperity in Nigeria. It suggests that a whole-of-government approach to problem-solving, policy sequencing, and integration into a measurable national input and output matrix are necessary. With clarity, integrity, and consistency, Nigeria’s GDP can potentially increase significantly through strategic trade positioning, taking advantage of international patents, and copyrights.

Ultimately, the report concludes that Nigeria in 2025 requires fresh thinking, a new vision, and a more precise purpose. To meet these thought leadership propositions, it is time to sequence policy actions in a measurable and monitorable manner that enables dynamic adjustments and periodic impact reviews.

“Nobody, including nations, succeeds without templates that have clarity, integrity, and consistency. The success of the future starts from planning today; the careful preparation for the arduous journey is just as necessary as the destination; good politicians/public officers plan, but brilliant politicians/officers prepare and deliver execution. In 2025, to unlock prosperity, the Nigerian economy needs brilliance,” it stated.

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