The Central Bank of Nigeria (CBN) says Nigeria’s domestic economy expanded by 3.87 per cent in 2025, an improvement over the 3.38 per cent recorded in 2024.
The CBN said this in its recently released annual report for the 2025 fiscal year.
According to the apex bank, broad-based growth followed gains from the continuing implementation of a cocktail of reforms in key sectors and the rebasing of the economy to accommodate emerging subsectors.
It said that headline inflation declined to 15.15 per cent in December 2025, from 34.80 per cent at the end of 2024.
It said that this was due to the combined effects of monetary policy tightening, exchange rate stability and revision of the methodology for computing the consumer price index (CPI).
“The revised methodology updated consumption weights in the CPI basket, thereby ensuring a more accurate reflection of current household expenditure patterns.
“Fiscal health showed signs of improvement in 2025, with 33.67 per cent growth in federation receipts. This followed increased oil and non-oil revenue inflows.
Accordingly, allocations to the three tiers of government improved, strengthening fiscal sustainability,” it said.
The CBN said that tax effort, measured as a ratio of tax revenue to GDP, rose to 7.15 per cent in 2025, from 5.41 per cent in 2024.
It said that the rise was driven by the substantial growth in petroleum profit tax, value added tax, and corporate income tax.
“At the end of September 2025, public debt stock rose to N153.292.48 (35.55 per cent of GDP) but remained below the national ceiling of 60 per cent and the 70 per cent threshold recommended for Market-Access Countries (MACs),” it said.
The CBN said that the global economy remained stable in 2025, in spite of heightened uncertainties.
“Although output growth was sustained at 3.30 per cent, the pace was uneven across regions.
“In advanced economies, growth slowed to 1.70 per cent, from 1.80 per cent, driven predominantly by softer demand.
“Growth momentum was, however, stronger in developing and emerging market economies (EMDEs), on the back of sustained policy support, with output expanding by 4.40 per cent, compared with 4.30 per cent in 2024,” it said.
It said that global inflation decelerated to 4.20 per cent, owing to lower energy and food prices, and the lagged effect of monetary tightening.
“In advanced economies, inflation declined marginally to 2.50 per cent from 2.60 per cent in 2024.
“The deceleration was, however, faster among EMDEs, as inflation eased to 5.20 per cent from 7.90 per cent.
“Many economies lowered rates in 2025, in response to softer inflation numbers and in pursuit of dual mandates,” it said.
The CBN said that the global fiscal policy landscape was, however, characterised by elevated debt levels and rising defence spending.
According to the apex bank, global financial conditions during the review period were shaped by geopolitical developments and developments in major economies.
It said that stock markets were largely bullish, underscoring strong corporate earnings and a shift in policy expectations.
“The prices of global commodities generally softened, with the average spot price of the Bonny Light declining to 70.93 dollars per barrel (pb), from 82.56 dollars pb in 2024, reflecting oversupply in the crude oil market”.
