Nigeria's Economy Grows 3.87% in 2025, Inflation Drops

The Central Bank of Nigeria (CBN) reported that Nigeria's domestic economy expanded by 3.87% in 2025, an increase from the 3.38% growth recorded in 2024. This growth was attributed to the ongoing implementation of various reforms in key sectors and the rebasing of the economy to include emerging subsectors.

Headline inflation decreased significantly to 15.15% in December 2025, down from 34.80% at the end of 2024, due to monetary policy tightening, exchange rate stability, and a revised methodology for calculating the consumer price index (CPI). The CBN noted a 33.67% increase in federation receipts, driven by higher oil and non-oil revenue, which improved allocations to the three tiers of government.

The tax effort ratio rose to 7.15% in 2025 from 5.41% in 2024, influenced by growth in petroleum profit tax, value-added tax, and corporate income tax. By September 2025, public debt stock reached N153.292 trillion, representing 35.55% of GDP, remaining below the national ceiling of 60%.