LAHOS, Nigeria (VOICE OF NAIJA) – The Central Bank of Nigeria said its monetary policy remained focused on achieving price stability in 2025, with the apex bank relying largely on orthodox policy instruments.
The CBN disclosed this in its recently released annual report for the 2025 fiscal year.
According to the report, monetary policy remained largely restrictive during the year, although an easing cycle commenced at the September meeting of the Monetary Policy Committee as disinflation persisted.
The apex bank said, in line with its policy stance, growth in reserve and broad money moderated to 15.60 per cent and 15.16 per cent respectively, compared with 32.09 per cent and 16.42 per cent recorded in 2024.
“The increase in broad money was influenced by the rise in net domestic assets and the decline in net foreign assets, reflecting in part, stability in the FX market and increased economic activity,” the report said.
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It added that consumer credit outstanding fell by 19.89 per cent during the period, largely due to a reduction in personal loans.
The CBN said the financial sector remained robust, stable and resilient, even under mild and moderate scenarios of sustained adverse economic conditions.
On the capital market, the apex bank said it was bullish in 2025, supported by strong corporate earnings and positive investor sentiment.
It said the All-Share Index rose by 51.19 per cent to 155,613, surpassing the 150,000 mark, which it said underscored strong market fundamentals and depth.
Market capitalisation also grew by 37.01 per cent to N149.74tn, supported by sustained risk-on sentiment and optimism over corporate earnings.
The CBN said the external sector remained buoyant, with the country recording an overall balance of payments surplus of $4.23bn, representing 1.45 per cent of Gross Domestic Product, compared with $6.83bn, or 2.71 per cent of GDP, in 2024.
It said the surplus was supported by the current and capital account, which recorded a combined surplus of $14.04bn, representing 4.82 per cent of GDP.
The financial account, however, recorded a lower net lending position of $1.69bn, or 0.58 per cent of GDP, compared with $9.65bn, or 3.83 per cent of GDP, in 2024.
The CBN attributed the development largely to the withdrawal of foreign currency and deposit holdings by residents.
Despite the development, the apex bank said capital inflows into the Nigerian economy increased by 93.71 per cent to $23.40bn in 2025 from $12.08bn in 2024.
It attributed the increase to competitive returns in the domestic financial market and gains from ongoing foreign exchange market reforms.
The CBN said the launch of the FX Code also contributed to renewed investor confidence.
It added that Nigeria’s international investment position recorded a higher net borrowing position, driven mainly by increased foreign direct investment liabilities.
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“While the stock of financial assets rose to $125.58bn from $116.73bn, net financial liability stood at $90.15bn, compared with $82.69bn in 2024,” the report said.
The apex bank said the country’s external reserves strengthened to $45.75bn, enough to finance 8.77 months of imports of goods and services or 13.33 months of goods-only imports.
It said sustained reforms in the foreign exchange market continued to promote stability and price discovery, with the naira strengthening to N1,435.76/$ at the end of 2025 from N1,535.82/$ at the end of 2024.
However, on an annual average basis, the exchange rate stood at N1,518.38/$ in 2025, compared with N1,478.97/$ in 2024.
(NAN)