By Boluwatife Oshadiya| August 6, 2026
Key Points
- Nigeria’s economy grew by 3.87% in 2025, up from 3.38% in 2024
- Headline inflation declined sharply to 15.15% in December 2025
- CBN attributed the improvement to economic reforms, tighter monetary policy and stronger fiscal performance
Main Story
Nigeria’s economy expanded by 3.87% in 2025, compared with 3.38% recorded in 2024, according to the Central Bank of Nigeria (CBN) in its 2025 Annual Report, as reforms across key sectors supported stronger economic activity.
The apex bank also reported that headline inflation fell to 15.15% in December 2025, from 34.80% a year earlier, citing tighter monetary policy, improved exchange rate stability and changes to the Consumer Price Index (CPI) methodology.
According to the report, economic growth was broad-based, reflecting continued implementation of structural reforms and the rebasing of Nigeria’s economy to capture emerging sectors.
The CBN said federation revenue increased 33.67%, driven by stronger oil and non-oil earnings, leading to improved allocations to the three tiers of government and supporting fiscal sustainability.
Tax revenue also strengthened, with Nigeria’s tax-to-GDP ratio rising to 7.15% from 5.41% in 2024, supported by higher collections from petroleum profit tax, value-added tax and corporate income tax.
Public debt stood at ₦153.29 trillion, representing 35.55% of GDP as of September 2025. The CBN noted that the figure remains below Nigeria’s statutory debt ceiling of 60% of GDP and below the 70% threshold recommended for Market Access Countries.
On the global outlook, the report said world economic growth remained stable at 3.30% in 2025 despite geopolitical uncertainties. Inflation moderated globally as energy and food prices eased, prompting many central banks to begin lowering interest rates.
The CBN also noted that the average price of Bonny Light crude declined to $70.93 per barrel from $82.56 per barrel in 2024 due to oversupply in the international oil market.
What’s Being Said
“Broad-based growth followed gains from the continuing implementation of reforms in key sectors and the rebasing of the economy to accommodate emerging subsectors,” the Central Bank of Nigeria said in its 2025 Annual Report.
What’s Next
- Investors and policymakers will monitor whether the lower inflation trend is sustained through 2026.
- The CBN is expected to continue balancing price stability with economic growth in future monetary policy decisions.
- Markets will also watch fiscal performance and debt sustainability as the government implements ongoing economic reforms.
The Bottom Line: The CBN’s latest report points to improving macroeconomic conditions after a challenging period marked by high inflation and policy adjustments. Sustaining this momentum will depend on whether reforms continue translating into stronger private sector investment, stable prices and inclusive economic growth.
