Nigerian business leaders are facing a perfect storm of economic challenges in 2025, according to a new report by PwC. High inflation, a weakening currency, and a volatile security situation are keeping them up at night.
The report highlights several key concerns:
- Soaring Inflation: The cost of living continues to skyrocket, eroding consumer purchasing power and squeezing business margins. Despite some anticipated deceleration, inflation remains a major obstacle to economic growth.
- Currency Woes: The naira’s depreciation has significantly increased the cost of imports, impacting businesses across sectors. This, coupled with high interest rates, is making it difficult for companies to access credit and invest in growth.
- Debt Sustainability: Nigeria’s rising debt levels are a major concern. The government’s large fiscal deficits and the high cost of servicing this debt are putting a strain on the economy and limiting the government’s ability to invest in crucial areas like infrastructure and social programs.
- Security Challenges: Insecurity, particularly in the northern regions, is disrupting businesses, hindering agricultural production, and deterring investors. This not only impacts the economy directly but also diverts resources from critical development projects.
- Funding Constraints: Access to affordable financing remains a significant challenge for businesses, particularly for small and medium-sized enterprises (SMEs). High interest rates and limited access to credit are hindering growth and job creation.
The report emphasizes the need for coordinated efforts from the government and the private sector to address these challenges. This includes implementing sound fiscal and monetary policies, improving security, and creating an enabling environment for businesses to thrive.
