Payment technology firm Mastercard has identified remittance inflow as a key driver of consumer spending in Nigeria, predicting a 6% increase in 2025.
This forecast is part of Mastercard’s Economics Institute’s 2025 Economic Outlook for Nigeria: Steering through Change.
- Key Findings
– Nigeria’s GDP is projected to grow by 2.9% in 2025, slightly below the global average.
– Consumer spending is expected to rise by 6%, driven by robust remittance inflows.
– Remittances play a pivotal role in driving economic resilience, with Nigeria’s youthful population and informal economy contributing to growth.
Remittances have become a lifeline for low- and middle-income communities in developing economies. The World Bank reports that global remittances surged from $128bn in 2000 to $857bn in 2023, with an estimated growth of 3% in 2024 and 2025.
The continued digitization of the payments industry has enhanced the efficiency and accessibility of remittances, reducing costs and ensuring secure, timely transactions. Digital payments and mobile money solutions have further increased the convenience and accessibility of remittances.
Nigeria’s economic growth is driven by remittance inflows, which sustain household incomes and consumption. The country’s economy demonstrates resilience amid global and regional shifts, leveraging its human capital and remittance ecosystem to navigate challenges.
Diaspora remittances play a significant role in Nigeria’s economy, with the country receiving over $25 billion in remittances in 2022 alone. These remittances have helped to stabilize the country’s foreign exchange market and support economic growth.
Despite the positive impact of remittances on Nigeria’s economy, there are challenges that need to be addressed. These include the high cost of remitting funds, limited access to financial services, and the need for greater transparency and regulation in the remittance industry.
Mastercard’s forecast highlights the importance of remittances in driving economic growth and consumer spending in Nigeria. As the country continues to navigate global and regional shifts, its remittance ecosystem will play a crucial role in sustaining economic resilience.