Business
First Bank predicts steady economic growth for Nigeria in 2025
First Bank of Nigeria Ltd. has projected steady economic growth for the nation in 2025.
The bank said that this projection is due to the bold economic reforms implemented in 2024, including the removal of fuel subsidies.
Chief Executive Officer (CEO), FirstBank Group, Mr Olusegun Alebiosu, stated this in his opening remark at the 2025 Nigeria Economic Outlook organised by the bank on Wednesday in Lagos.
He described 2024 as a year of miracles and leading to a rebirth for positive economic growth outlook for 2025.
Alebiosu, who joined the hybrid event virtually, said the fight to remove fuel subsidies seemed impossible for almost 40 years, hence the need to call 2024 a miracle year.
He said 2024 was a year of remarkable progress, paving the way for a positive economic growth outlook in 2025.
“I always refer to 2024 as a year of miracle. I call it a year of miracle because I never believed in my lifetime that Nigeria would be able to exit fuel subsidy,” he said.
He said, although this move caused some initial discomfort, it ultimately led to a ripple effect of growth, with the price of premium motor spirit (PMS) gradually decreasing.
According to him, this trend has raised hopes for a brighter 2025, with the event providing an opportunity to review the past, reset expectations, and renew hopes for a better future.
Alebiosu praised the resilience of Nigerians and the impact of the government’s reforms, which, although painful, were necessary to address inflationary pressures that had been exerting a strain on households and corporate incomes in 2024.
He said: “The fight to remove fuel subsidy seemed impossible for almost 40 years, hence, the need to call 2024 a miracle year.”
The inflation rate reached a three-decade high of 34.60 per cent in November 2024, prompting the Central Bank of Nigeria (CBN) to increase the benchmark Monetary Policy Rate (MPR) to 27.5 per cent.
The bank’s CEO noted that in spite of these challenges, the GDP grew steadily, with a 3.46 per cent increase in Q3 2024.
He recalled that the introduction of an electronic foreign exchange matching system in December 2024 had also contributed to the stability of the foreign exchange market.
According to him, this is another early sign of growth in 2025.
Other indicators of growth include increased competition in the downstream sector, resulting in falling PMS prices, and the revitalisation of the Port Harcourt and Warri refineries.
“Signs have begun to emerge that the reforms pursued by the Government are starting to yield the desired results,” Alebiosu said.
With the proposed N49.7 trillion 2025 budget expected to provide sufficient economic stimulus, the projected GDP growth rate of 3.68 per cent for 2025 appears to be a likely outcome.
“The projected GDP growth rate of 3.68 per cent for 2025 is a very likely outcome.
“As a Bank that has done business in Nigeria over several economic cycles, FirstBank remains poised to walk with our customers through this difficult, yet promising, stage of our nation’s journey.
“The bank’s theme, ‘Nigeria 2025: Path to Economic Rebound and Recovery,’ reflects its understanding of the domestic economic realities and its commitment to partnering with customers to identify emerging opportunities and achieve their goals in 2025 and beyond.
“FirstBank is committed to supporting its customers with innovative products and services to help them leverage opportunities to succeed in 2025 and beyond,” he said. (NAN)
The Senate has passed two out of four major tax reform bills, marking a significant milestone in the ongoing overhaul of the nation’s tax administration framework.
The two bills, one seeking to repeal the Federal Inland Revenue Service (Establishment) Act and another to establish the Joint Revenue Board (Establishment) Bill 2025 along with the Nigeria Revenue Service Bill 2025, were passed following a clause-by-clause consideration during the Committee of the Whole and their subsequent third reading on the Senate floor.
President Bola Ahmed Tinubu had in October 2024 transmitted the four tax reform bills to the National Assembly for consideration and passage.
However, the Senate President, Godswill Akpabio, commended the progress, expressing optimism that the reform bills would not only enhance governance but also revolutionise tax collection and distribution across the country.
“These bills will add immense value to governance and transform how taxes are collected and shared in Nigeria,” he said.
He further assured that the remaining two bills would be finalised tomorrow (Thursday), even if it required extended sitting hours.
“We are committed to concluding the outstanding bills tomorrow, even if we have to stay here until 10 p.m.,” Akpabio said.
Abubakar Kyari, minister of agriculture and food security, says Nigeria has lost over N1.3 billion to the outbreak of Tuta absoluta, a tomato-destroying pest commonly known as tomato ebola, in three states.
Speaking on Wednesday at a capacity-building workshop for financial institutions in Abuja, Kyari said the losses were recorded in Kano, Katsina, and Kaduna states.
He said the outbreak had triggered a sharp increase in the price of tomatoes — with the cost of a 50-kilogram (kg) basket rising from N5,000 to as high as N30,000 — further compounding food inflation and putting pressure on household budgets.
The minister described Tuta absoluta as a fast-spreading invasive pest capable of wiping out entire tomato fields within 48 hours, stressing that the incident exposed the vulnerability of the country’s horticultural systems.
According to Kyari, the crisis underscores the pressing need for effective pest control measures, investment in resilient crop varieties, and stronger support systems for farmers to protect Nigeria’s food supply chains.
“Tomatoes and peppers, essential ingredients in virtually every Nigerian kitchen, serve as baseline commodities for daily cooking,” he said.
“When the prices of these staples spike, they set off a chain reaction that affects the cost of meals across homes, restaurants and food vendors.
“According to the 2024 National Bureau of Statistics (NBS) tomatoes led the food price index with a staggering 320 per cent year-on-year increase, followed by peppers and other produce.
“These spikes disproportionately affect low-income households, underlining the urgent need for more stable production, better storage and accessible finance across the horticulture value chain.”
Kyari described horticulture as the “sleeping giant” of Nigerian agriculture and called for urgent efforts to unlock its full potential through sustainable financing.
He explained that horticulture — which includes the cultivation of fruits, vegetables, herbs, spices and ornamentals — holds far-reaching benefits beyond food production.
The minister said it is a dynamic engine for rural transformation, job creation, improved nutrition and trade diversification.
”With increasing urbanisation and growing awareness of healthy diets, consumer demand for fresh and diverse produce is rising rapidly. Horticulture is well-positioned to meet this demand,” he added.
Despite the challenges in the horticulture sector, Kyari said it remains one of the most promising frontiers for agricultural transformation, offering higher value per hectare, shorter production cycles, and multiple annual harvests ideal for smallholder commercialisation.
He added that the sector offers high employment potential throughout the year, particularly for women and young people, and is closely connected to processing, packaging, retail, and export markets.
“The sector also offers climate resilience through protected cultivation and irrigation systems, urban food access through peri-urban farming and logistics integration,” he said.
“Horticulture is a high-impact, high-return opportunity sitting at the intersection of agriculture, health, industry, and trade.”
The minister outlined the sector’s major contributions to Nigeria’s agricultural transformation, including the diversification of production and income sources, improved food and nutrition security, and job creation with youth involvement.
Kyari also highlighted its role in reducing import dependence, boosting export potential, enhancing climate resilience, and strengthening access to urban markets.
“Crops like tomatoes, pineapples, cucumbers, citrus and plantains have huge domestic demand and are increasingly becoming important commercial crops,” Kyari said.
“On food and nutrition security, horticultural crops are rich sources of vitamins A, C, iron, zinc, and folate nutrients vital for child development, maternal health and disease prevention.
“Scaling up their production and affordability is key to ending malnutrition in all its forms.”
Kyari urged financial institutions to better understand the horticulture value chain — from seed to shelf — and to move beyond generic lending and develop tailored products that aligned with the specific stages of the value chain.
The minister also urged them to develop fit-for-purpose financial products, including seasonal credit lines, equipment leasing, invoice discounting, and trade financing.
The naira yesterday depreciated to N1, 610 per dollar in the parallel market from N1,605 per dollar on Tuesday.
Similarly, the Naira depreciated to N1,612 per dollar in the Nigerian Foreign Exchange Market (NFEM).
Data published by the Central Bank of Nigeria, CBN showed that the exchange rate for the naira rose to N1,612 per dollar from N1,609 per dollar on Tuesday, indicating a N4 depreciation for the naira.
Consequently, the margin between the parallel market and NFEM rate narrowed to N3 per dollar from N4 per dollar on Tuesday.