The Nigerian Economic Summit Group (NESG) has launched the 2025 Private Sector Outlook, a comprehensive economic analysis that highlights key trends, challenges, and opportunities for businesses operating in Nigeria’s evolving economic landscape.
The event, jointly organised by NESG’s Corporate Affairs and Stakeholder Management Department and its Research and Development Department, provided crucial insights into Nigeria’s macroeconomic conditions and strategies for private sector resilience.
In her opening remarks, NESG Board Director, Mrs. Wonu Adetayo, emphasised the private sector’s vital role in shaping Nigeria’s economic resilience.
She noted that despite structural weaknesses, Nigeria recorded a 3.4% economic growth rate in 2024, the highest since 2021.
The number of expanding sectors also increased from 32 in 2023 to 38 in 2024, driven by key reforms such as fuel subsidy removal and exchange rate harmonisation.
However, she cautioned that stagnant productivity, rising inflation, and economic imbalances continue to impact living standards.
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Dr. Segun Omisakin, NESG’s Chief Economist and Director of Research, presented an in-depth analysis of the private sector’s performance in 2024.
While foreign exchange availability improved, Nigeria’s currency depreciated significantly, with the official exchange rate averaging N1,479.9/$.
Although trade surpluses and increased foreign capital inflows were recorded, public debt soared to N142.3 trillion by September 2024, posing serious fiscal constraints.
He also highlighted the foreign exchange shortages, insecurity, inadequate infrastructure, and limited market access that continue to challenge businesses.
Between 2023 and 2024, multinational divestments and business closures resulted in an estimated N94 trillion economic loss, with 30% of Nigeria’s 24 million MSMEs shutting down during this period.
Looking ahead, Dr. Omisakin emphasised that businesses must adapt to economic uncertainties through strategic planning.
He outlined NESG’s economic stabilization, consolidation, and acceleration framework, urging policymakers to ensure reform efficacy and enhance private sector competitiveness.
Key challenges, including currency depreciation, inconsistent policies, and global market trends, were discussed by panelists.
Concerns were raised over the lack of immediate monetary interventions after the fuel subsidy removal, which worsened inflation.
Businesses also struggle with inconsistent customs regulations and fluctuating exchange rates, deterring investments and hampering stability.
A major insight from discussions with potential investors in Qatar was that policy stability matters more than exchange rates. Investors are willing to engage despite currency depreciation, provided the government maintains clear and consistent policies.
Panelists called for increased private sector inclusion in policy formulation, emphasising the need for business associations such as NASME, NASSI, and NECA to play a greater role in economic decision-making.
Dele Kelvin Oye, Esq., President of NACCIMA and Chairman of the Organised Private Sector of Nigeria (OPSN), stressed that the government must act as a facilitator, not a competitor.
“Business organizations should always be in the room when key negotiations take place to ensure broad-based economic benefits,” he stated.
Discussions also emphasised policy consistency as a key driver of investor confidence.
Panelists cited examples such as U.S. tariff policies, which immediately impact global markets, highlighting how unpredictable policies deter investment and disrupt business confidence in Nigeria.
Additionally, law enforcement inefficiencies and regulatory bottlenecks were identified as major hurdles.
Panelists urged the government to implement legal reforms and improve regulatory clarity to enhance Nigeria’s business environment and attract both local and foreign investment.
The 2025 Private Sector Outlook serves as a strategic guide for businesses, policymakers, and investors, offering a roadmap for building a stable, competitive, and resilient private sector.
NESG reaffirmed its commitment to advocating for policies that enhance economic growth while ensuring the private sector remains a key player in policy formulation.
By fostering constructive dialogue between policymakers and business leaders, NESG aims to create a predictable economic environment that attracts sustainable investments, ensuring long-term growth for Nigeria’s economy.
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