The Central Bank of Nigeria, CBN, says its monetary policy in 2025 remained focused on price stability, driven mainly by orthodox instruments and a largely restrictive stance for most of the year.
According to the apex bank’s newly released 2025 Annual Report, persistent disinflation enabled the Monetary Policy Committee, MPC, to begin an easing cycle from its September meeting.
Reserve Money growth slowed to 15.60 per cent from 32.09 per cent in 2024, while Broad Money growth moderated to 15.16 per cent from 16.42 per cent. The CBN attributed broad money expansion to a rise in net domestic assets and a decline in net foreign assets, reflecting improved stability in the foreign exchange market and stronger domestic activity. Consumer credit outstanding dropped by 19.89 per cent due to lower personal loans.
The report said the financial sector remained robust and resilient, even under simulated adverse conditions.
The capital market also recorded strong gains. The All-Share Index rose 51.19 per cent to 155,613, crossing the 150,000 mark for the first time, while market capitalisation grew 37.01 per cent to N149.74 trillion, supported by solid corporate earnings and investor sentiment.
In the external sector, Nigeria recorded a Balance of Payments surplus of $4.23 billion, or 1.45 per cent of GDP. Capital inflows surged 93.71 per cent to $23.40 billion, boosted by market reforms including the FX Code. External reserves rose to $45.75 billion, enough to cover 8.77 months of imports.
The Naira closed stronger at N1,435.76/ $, compared to N1,535.82/$ at end-2024.
