Stanbic IBTC Bank, through S&P Global has announced a 3.7% growth in Nigeria’s economy in the first quarter of 2025. This was reportedly driven by improved business conditions and increased oil production in the country.
This was contained in the Purchasing Managers’ Index (PMI) report released by Stanbic IBTC Bank Nigeria on Tuesday. Recently, the World Bank projected that Nigeria’s economy would grow by 3.6% in 2025, higher than 3.4% in 2024.
Muyiwa Oni, head of equity research at Stanbic IBTC Bank, disclosed the percentage aligns with the expected 3.5% annual growth. He noted that while oil production grew by 3.7 percent, agriculture is still lagging with an average growth rate of 3.6%.
Oni also projected that inflation will stay soft, with interest rates expected to be lower this year and next year. According to him, a 150-200 bps rate cut is expected in 2025 and a 200-250 bps cut in 2026.
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He noted that structural reforms, and elimination of trade barriers, among others, will support medium-term economic growth. Oni adds that post-gross domestic product (GDP) may amplify the 3.7% growth to 4.2 percent yearly.
According to the bank report, business conditions are above neutral level for the seventh consecutive month of the year. However, the growth pace slowed for the third straight month after peaking in the third month of the year.
The report attributed the decelerated rate to a decline in manufacturing output, while other sectors continued to grow. However, new customers and new orders were the major factors behind businesses where production grew.
The PMI report was compiled using responses from purchasing managers in a panel of around 400 private sector companies.
