Abuja: Nigeria’s domestic economy expanded by 3.87% in 2025, an improvement over the 3.38% recorded in 2024, according to the Central Bank of Nigeria’s (CBN) recently released annual report for the 2025 fiscal year.
According to News Agency of Nigeria, the apex bank attributed the broad-based growth to the gains from continued implementation of reforms in key sectors and the rebasing of the economy to include emerging subsectors. The report also highlighted a significant decline in headline inflation, which fell to 15.15% in December 2025, down from 34.80% at the end of 2024. This decline was credited to monetary policy tightening, exchange rate stability, and a revised methodology for computing the consumer price index (CPI), which updated consumption weights to better reflect current household expenditure patterns.
The report noted that Nigeria’s fiscal health showed signs of improvement in 2025, with a 33.67% growth in federation receipts due to increased oil and non-oil revenue inflows. This improvement led to better allocations to the three tiers of government, strengthening fiscal sustainability. Additionally, the tax effort, measured as a ratio of tax revenue to GDP, rose to 7.15% in 2025, up from 5.41% in 2024, driven by substantial growth in petroleum profit tax, value-added tax, and corporate income tax.
The CBN reported that by the end of September 2025, the public debt stock rose to N153.292.48, accounting for 35.55% of GDP, but remained below the national ceiling of 60% and the 70% threshold recommended for Market-Access Countries (MACs).
The global economic landscape in 2025 remained stable despite heightened uncertainties, with output growth sustained at 3.30%. However, growth was uneven across regions, with advanced economies experiencing a slowdown to 1.70% from 1.80%, driven by softer demand. In contrast, developing and emerging market economies (EMDEs) demonstrated stronger growth momentum, with output expanding by 4.40% compared to 4.30% in 2024.
Global inflation decelerated to 4.20% due to lower energy and food prices and the lagged effect of monetary tightening. Inflation in advanced economies declined marginally to 2.50% from 2.60% in 2024, while EMDEs experienced a faster deceleration, with inflation easing to 5.20% from 7.90%.
The global fiscal policy landscape was marked by elevated debt levels and rising defense spending, influenced by geopolitical developments and trends in major economies. Stock markets were largely bullish, reflecting strong corporate earnings and a shift in policy expectations. Global commodity prices softened, with the average spot price of Bonny Light crude oil declining to $70.93 per barrel from $82.56 per barrel in 2024, reflecting an oversupply in the crude oil market.