The Central Bank of Nigeria released its Second Quarter 2025 Economic Report, reporting faster domestic activity alongside easing price pressures. Real GDP growth accelerated to 4.23% in Q2 2025, while headline inflation eased to 22.22% in June 2025; monetary expansion was described as moderate and consistent with a tight monetary policy stance, and the external position improved with external reserves at USD 37.81 billion. Growth was supported by a sharp rebound in the oil sector (20.46%) alongside 3.64% non-oil growth, with average crude oil production (excluding condensates) at 1.48 mbpd versus an OPEC quota of 1.50 mbpd. Provisional gross Federation Account receipts rose 15.02% quarter-on-quarter to NGN 8.31 trillion, while total public debt stood at NGN 149,389.00 billion (33.10% of GDP) at end-March 2025; debt service increased to NGN 4.75 trillion from NGN 3.24 trillion at end-December 2024. Broad money (M3) increased 3.44% to NGN 117.25 trillion at end-June 2025, driven by a 29.74% rise in net foreign assets, and liquidity operations resulted in a net withdrawal of NGN 3.90 trillion via Open Market Operations. In the banking sector, liquidity and capital ratios were reported above regulatory minimums (55.03% and 13.43%, respectively), while the non-performing loans ratio edged up to 5.63%. Externally, the current and capital account surplus increased to USD 5.28 billion, the average NFEM exchange rate depreciated to NGN 1,581.06/USD from NGN 1,521.56/USD, and external debt was reported at USD 46.98 billion (19.32% of GDP) at end-June 2025. The report’s outlook anticipates slower global growth in 2025 (3.00% versus 3.30% in 2024) and further disinflation globally, while Nigeria’s inflation is expected to moderate further in Q3 2025, with risks cited including security concerns, foreign exchange demand pressures, rising production costs, and potential price impacts from higher PMS and electricity prices and import tariffs.
Central Bank of Nigeria 2025-06-30
Central Bank of Nigeria publishes Q2 2025 Economic Report highlighting 4.23% GDP growth and June inflation of 22.22%
The Central Bank of Nigeria's Q2 2025 Economic Report highlights accelerated real GDP growth to 4.23% and eased headline inflation to 22.22% in June 2025, with moderate monetary expansion and improved external reserves at USD 37.81 billion. The oil sector rebounded sharply, contributing to a 15.02% rise in gross Federation Account receipts, while total public debt reached NGN 149,389.00 billion. The report anticipates slower global growth and further disinflation, with domestic risks including security concerns and foreign exchange pressures.