Nigeria Development Update, May 2025

Since the last edition of the Nigeria Development Update (NDU) in October 2024, economic developments in Nigeria have been broadly positive, helped by the government staying the course in maintaining an appropriate macroeconomic policy mix. Now, the challenge is to consolidate macroeconomic stability and ignite inclusive growth through deeper, wider structural reforms. Part 1 of the NDU provides a summary of recent economic developments in Nigeria and updates the outlook through 2027. Part 2 of this edition of the NDU assesses how to build on the progress being made towards macroeconomic stability. It describes the scale of Nigeria's inclusive growth challenge and offers reform suggestions which can help make 2025 a break-out year for Nigeria's economic performance. With fiscal space created through recent macro fiscal reforms, Nigeria now has a historic opportunity to improve the quality of spending and invest in human capital, social protection, and infrastructure