LAGOS, Nigeria (VOICE OF NAIJA) – Nigeria’s domestic economy grew by 3.87 per cent in 2025, up from 3.38 per cent recorded in 2024, the Central Bank of Nigeria has said.
The apex bank disclosed this in its 2025 Annual Report.
According to the report, the broad-based growth reflected gains from the continued implementation of reforms across key sectors and the rebasing of the economy to capture emerging subsectors.
The CBN also said headline inflation fell to 15.15 per cent in December 2025 from 34.80 per cent at the end of 2024.
It attributed the decline to the combined effects of monetary policy tightening, exchange rate stability and the revision of the methodology used to calculate the Consumer Price Index.
“The revised methodology updated consumption weights in the CPI basket, thereby ensuring a more accurate reflection of current household expenditure patterns,” the bank said.
READ ALSO: Tough Reforms Needed To Rescue Nigeria’s Economy – Shettima
The apex bank said Nigeria’s fiscal position also showed signs of improvement in 2025, with federation receipts rising by 33.67 per cent following increased oil and non-oil revenue inflows.
It said the increase resulted in improved allocations to the three tiers of government, thereby strengthening fiscal sustainability.
The CBN said the tax-to-GDP ratio rose to 7.15 per cent in 2025 from 5.41 per cent in 2024.
It attributed the increase to substantial growth in petroleum profit tax, Value Added Tax and company income tax.
The bank said public debt stock stood at N153.292tn as of September 2025, representing 35.55 per cent of GDP.
It noted that the debt level remained below Nigeria’s national ceiling of 60 per cent and the 70 per cent threshold recommended for Market-Access Countries.
On the global economy, the CBN said economic activity remained stable in 2025 despite heightened uncertainties.
It said global output growth was sustained at 3.30 per cent, although performance varied across regions.
According to the report, growth in advanced economies slowed to 1.70 per cent from 1.80 per cent in 2024, largely due to weaker demand.
Growth in developing and emerging market economies, however, strengthened to 4.40 per cent from 4.30 per cent in 2024, supported by sustained policy measures.
The CBN said global inflation also decelerated to 4.20 per cent during the year, driven by lower energy and food prices and the delayed effects of monetary policy tightening.
It said inflation in advanced economies declined marginally to 2.50 per cent from 2.60 per cent in 2024, while inflation in emerging and developing economies fell to 5.20 per cent from 7.90 per cent.
The apex bank added that several economies reduced interest rates in 2025 in response to easing inflationary pressures and in pursuit of their respective dual mandates.
READ ALSO: Finance Minister Hails Tinubu For Nigeria Reform, Economy Growth
It, however, said the global fiscal policy environment remained characterised by elevated debt levels and increased defence spending.
According to the CBN, global financial conditions during the period were influenced by geopolitical developments and economic policies in major economies.
It said global stock markets were largely bullish, supported by strong corporate earnings and changing expectations around monetary and economic policies.
The bank said global commodity prices generally softened, with the average spot price of Bonny Light crude declining to $70.93 per barrel in 2025 from $82.56 per barrel in 2024.
It attributed the decline to oversupply in the global crude oil market.
(NAN)