New economic outlook report by Kreston Pedabo has noted that oil sector vulnerabilities, inflation pressures and currency risks may create disruption for the Nigerian economy in 2025.
  
Pedabo, in the outlook, which highlights challenges for Nigeria’s economic growth in 2025, offered strategic leeway to mitigate these threats. Co-authored by the firm’s Senior Associate, Financial Advisory & Risk Management, Oreofe Olamoyegun; Lead, Management Consulting, Tyna Adediran; Partner, Financial Advisory & Risk Management, Nosa Ogbebor; and Senior Partner, Tax Compliance & Advisor, Killian Khanoba, Pedabo said Nigeria’s economic projections for 2025 indicated modest growth potential, but that several structural challenges could hinder progress.
  
Persistent insecurity, infrastructure deficits, and corruption may slow down economic reforms and stall growth initiatives, the firm noted.  Inflationary pressures remain a significant concern, as rising prices continue to erode purchasing power, increase operational costs, and reduce consumer demand, which could have negative consequences for the financial services sector. The depreciation of the naira is another major risk, as it could discourage investment, worsen foreign exchange shortages and disrupt trade.
  
The report also noted vulnerabilities in the oil sector, where issues such as oil theft, vandalism and global price fluctuations threaten revenue recovery. Execution risks in infrastructure projects remain a challenge due to financing gaps, bureaucratic delays, and weak public-private partnerships. 
  
In the non-oil sector, high production costs, limited credit access and inflation pressures were projected to stifle growth in agriculture, manufacturing and services. 
  
Global economic uncertainty, driven by external shocks, such as fluctuating demand for fossil fuels and instability in global financial markets, may also impact Nigeria’s exports and foreign direct investment inflows.
 
 According to the report, unemployment, particularly among the youth, remains a pressing issue, with limited job creation opportunities hindering inclusive economic growth. 
  
The report noted that rising public debt and high servicing costs could restrict fiscal space for critical investments in infrastructure and social services. 
  
Furthermore, governance challenges and a lack of accountability could weaken policy implementation and erode investor confidence. To counter these risks, Pedabo recommended targeted policy measures to strengthen economic resilience. 
  
It advocated increased public-private partnerships in infrastructure development, supported by a transparent regulatory framework and government guarantees. 
  
The report also calls for strategies to diversify exports by strengthening international trade agreements, implementing targeted export promotion initiatives and encouraging import substitution.
  
In the energy and infrastructure sectors, investments in renewable energy initiatives, refinery and pipeline upgrades, and expanded transport and logistics networks were seen as essential for reducing production and distribution costs. 
  
The report also emphasised the need for greater investment in technology and innovation. Support for tech startups, improved broadband infrastructure, and digital literacy promotion are expected to drive growth in the technology sector and improve internet accessibility.