Nigeria’s economy has shown resilience in 2025, with the country’s GDP growing by 3.98% in the third quarter, according to the National Bureau of Statistics (NBS). This growth rate is higher than the 3.86% recorded in the same period of 2024. The non-oil sector, agriculture, and a recovering oil sector have driven this growth.
The government’s economic reforms, including the removal of subsidies and exchange rate unification, have contributed to this performance. However, challenges such as insecurity, debt, and rapid population growth remain significant risks. The International Monetary Fund (IMF) has advised the Nigerian government to intensify its reform efforts to shore up growth.
In 2025, Nigeria’s tax system underwent significant reforms, with the introduction of four landmark acts: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act. These reforms aim to modernize the tax system, improve revenue generation, and promote economic growth.
The year also saw a crisis between Dangote Refinery and oil marketers, which stemmed from the refinery’s goal to disrupt the traditional fuel import model and establish a dominant market position. The conflict led to accusations of manipulation and calls for government intervention to mediate a solution.
Despite these challenges, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has expressed optimism about the country’s economic prospects, stating that Nigeria’s economy has emerged stronger and more resilient. The CBN has also conducted stress tests, which showed that the country’s banking industry is financially robust.
The IMF has projected a 3.9% GDP expansion for Nigeria in 2025, driven by an increase in oil production, investor confidence, and reforms in the oil, tax, and financial sectors. The Fund has also advised policymakers to restore confidence through credible, transparent, and sustainable policies.
As Nigeria looks to 2026, the government is expected to continue its reform efforts, with a focus on improving the business environment, increasing investment, and promoting economic growth. The country’s ability to navigate its challenges and capitalize on its opportunities will be crucial in determining its economic trajectory in the coming years.