Overview of Strategic Implication of Nigeria's Economic Outlook for Year 2025: A Policy Guide for Corporate Organisations

Abstract

This study investigates the strategic implication of Nigeria’s economic outlook for year 2025 as a policy guide for corporate organizations. The study uses secondary data with all data compiled being obtained from verifiable sources which include PricewaterhouseCoopers (2025), Reuters (2025), Forbes (2023); Central Bank of Nigeria (2024); BusinessDay (2024); African Development Bank Group (2023). Deductive approach constitutes basis of analysis. Accordingly, the study is purely qualitative and therefore requires no hypothesis testing or inferential dimensions. The findings indicate that inflation rate is in the range of 32.7% and there about, being driven by rising costs in food and energy. Removal of fuel subsidies and the devaluation of the naira have further contributed to inflationary pressures, leading to increased living costs for consumers and higher production expenses for businesses. The Monetary Policy Rate (MPR) has been in the range of 27.5% and there about since late 2023, indicating high-interest-rate environment and poses challenges for businesses. High interest rate spread in Nigerian banks could reduce GDP growth by as much as 30%. Ability of small and medium enterprises (SMEs) to expand and create jobs is being hindered. Nigerian naira has continued to experience volatility. Thus, this study discovers the existence of factors that negatively impact the realization of corporate goals and objectives of organizations -Nigeria’s business environment is characterized by surging inflation, weak exchange rate, weak GDP, high interest rate, unfair government policies, and ill-timed removal of fuel subsidy. Due to these issues, corporate organizations face financial and non-financial performance threats. This study concludes that economic indicators have implications for corporate businesses in Nigeria. It is therefore recommended that managers of corporate organizations should deploy appropriate strategic options to navigate Nigerian business environment.