Three ways to improve Nigeria’s business environment in 2025

As Nigeria sets out to become a more attractive destination for investors and entrepreneurs in 2025, efforts are underway to revamp the country’s business environment.

In 2025, achieving monetary and fiscal stability is crucial in the stabilisation phase of the current economic landscape that aims to rectify future fiscal imbalances.

From reducing inflation to boosting foreign exchange liquidity, and improving fiscal performance, the NESG 2025 economic outlook report revealed three major pathways to achieve economic stabilisation and improve Nigeria’s business environment in 2025.

“Implementing these measures will improve macroeconomic stability, creating a conducive environment for domestic and foreign investments to thrive. However, low and stable inflation reduces uncertainties, making it easier for businesses to plan and expand operations,” the report said.

Read also: Nigeria’s business environment to remain challenging till 2029

Controlling Inflation

Achieving a stable and moderate level of inflation requires a comprehensive framework that incorporates fiscal, trade, and monetary policy strategies. Strengthening fiscal discipline, reprioritising expenditure, and redirecting gains from subsidy removal to social programs are strategies that would address structural and macroeconomic vulnerabilities.

Boosting FX Liquidity and Stabilising FX rate

Streamlining trade processes is a key trade policy strategy for increasing FX supply and reducing distortions in the Nigerian business environment. Improving remittance inflows through formal channels such as mobile banking platforms is another effective strategy for boosting FX liquidity. Another key strategy is to maintain a credible monetary policy framework for ensuring exchange rate stability.

Improve Fiscal Performance and Lower Debt Vulnerabilities

A comprehensive framework targeted at boosting domestic revenue mobilisation through tax reforms aimed at making tax payments more progressive will boost tax revenues and drive fiscal consolidation. However, utilising non-debt financing methods such as Public-Private Partnerships (PPP) will further alleviate the government’s debt obligations and foster macroeconomic stability.