The Central Bank of Nigeria (CBN) says its monetary policy remained focused on price stability in 2025, relying on orthodox instruments.
The CBN said this in its recently released annual report for the 2025 fiscal year.
According to the apex bank, although monetary policy was largely restrictive in 2025, an easing cycle was initiated at the September MPC, as disinflation persisted.
It said that consistent with its policy posture, expansion in reserve and broad money moderated to 15.60 per cent and 15.16 per cent, respectively.
It said that the figures compared with growths of 32.09 per cent and 16.42 per cent in 2024.
“The increase in broad money was influenced by the rise in net domestic assets and the decline in net foreign assets, reflecting in part, stability in the FX market and increased economic activity.
“Consumer credit outstanding fell by 19.89 per cent, reflecting the reduction in personal loans in the review period.
“The financial sector remained robust, stable and resilient, even under mild and moderate scenarios of sustained adverse economic conditions,” it said.
The apex bank said that the Nigerian capital market was bullish in 2025, supported by robust corporate earnings and positive investor sentiment.
It said that the all-share index (ASI) rose by 51.19 per cent to 155,613 surpassing the 150,000 mark, underscoring strong fundamentals and market depth.
According to it, market capitalisation grew by 37.01 per cent to N149.74 trillion, buoyed by sustained risk-on sentiment and strong corporate earnings optimism.
“The external sector remained buoyant, with an overall balance of payments surplus of 4.23 billion dollars (1.45 per cent of GDP), compared with 6.83 billion dollars (2.71 per cent of GDP) in 2024.
“This was supported by the current and capital account, which recorded a surplus of 14.04 billion dollars (4.82 per cent of GDP).
The financial account was, however, in a lower net lending position of 1.69 billion dollars (0.58 per cent of GDP), compared with 9.65 billion dollars (3.83 per cent of GDP) in 2024.
“This is due largely to withdrawal of foreign currency and deposit holdings by residents,” it said.
The CBN said that in spite of the developments, capital flow into the economy increased by 93.71 per cent to 23.40 billion dollars in 2025, from 12.08 billion dollars, attributing the development to competitive returns in the domestic financial market and gains from ongoing reforms in the FX market.
