Business Companies Stock Market Adedotun August 13, 2025 0 Comments

CFG Advisory warns of slowing economy, rising debt

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Investment and advisory firm, CFG Advisory, has called on the Central Bank of Nigeria (CBN) to adopt urgent, growth-focused measures to counter slowing economic growth and Nigeria’s mounting debt burden.

The firm, in an economic update on Monday, warned that Nigeria’s debt profile—now above $100 billion—combined with heavy debt servicing, is crowding out private sector credit and discouraging foreign direct investment (FDI).

Citing data from the National Bureau of Statistics, CFG noted that FDI plunged by 70.06% quarter-on-quarter to $126.29 million in Q1 2025, down from $421.88 million in Q4 2024, despite an overall rise in capital inflows. The figures show foreign investors are shifting towards short-term, high-yield financial instruments rather than long-term productive investments.

FDI accounted for just 2.24% of total capital importation in Q1 2025, compared to 8.29% in the previous quarter and 3.53% in Q1 2024. Year-on-year, however, FDI grew by 5.97% from $119.18 million in Q1 2024.

CFG highlighted that while Nigeria has seen a stronger foreign exchange rate and slightly lower inflation, GDP growth slowed from 3.8% in Q4 2024 to 3.1% in Q1 2025. The firm warned that “stability alone is not enough” and called for clear strategies to accelerate economic expansion.

Key recommendations from CFG Advisory include:

Targeted interest rate cuts by the end of Q3 2025 to stimulate growth and ease inflationary pressures.
Sale of oil joint venture assets to raise $35–$40 billion, reducing debt and strengthening the national balance sheet.
Increased investment in non-oil exports, especially agriculture, to diversify revenue sources.
Immediate implementation of an inflation targeting programme, aiming for an average rate of 12–14%, with projections of lifting GDP growth to 8–10% based on historical performance.