Nigeria’s economy gained further traction in the fourth quarter of 2025, with real GDP expanding by 4.07% year-on-year, marginally higher than the 3.98% recorded in Q3 2025 and above the 3.76% achieved in the corresponding quarter of 2024. As a result, full-year 2025 growth accelerated to 3.87%, compared with 3.38% in 2024.

The resilience in growth momentum reflects more than a cyclical rebound; it underscores the impact of a gradually stabilizing macroeconomic environment. Given Nigeria’s strong exchange rate sensitivity and reliance on imported inputs, the appreciation of the Naira in Q4 2025 significantly reduced imported costs. A firmer currency lowers input expenses for manufacturers and traders while improving pricing visibility, allowing businesses to rebuild margins and manage inventories more efficiently.

At the same time, sustained disinflation supported both households and corporates. Slower price growth improved real purchasing power and boosted aggregate demand, while also reducing operating cost volatility for businesses.