THE economic landscape in 2025 was characterised by austerity, despite a sustained deceleration in inflation from 34 per cent to 14.5 per cent, as reported by the National Bureau of Statistics (NBS) over several consecutive months.

Yet, market realities showed Nigerians grappling with food costs, subsidy removals, a volatile naira, and tight monetary conditions that pushed interest rates to punishing levels.

Despite easing inflation, the deceleration failed to reflect in consumer prices, with households still struggling to afford basic food items. Food and non-alcoholic beverages, transport, and accommodation services contributed most to inflation in 2025, according to the NBS.

World Bank Country Director, Mathew Verghis, urged reforms to ease the burden on the poor, calling for reduced tariffs and better policy coordination. “High tariff on goods consumed by the poor. Alignment of monetary and fiscal policies is very important in creating the right balance,” he said.

He also stressed that “pro-poor investments could support inclusive growth and improve the rural economy while lifting the poor,” adding that “conditional cash transfer and school feeding should support and grow the poor.”

As the year closed, analysts noted that while declining inflation may give the Central Bank of Nigeria room to ease rates, weak consumer demand and fiscal pressures remain. In this report, The ICIR examines the key economic actions that reshaped Nigeria’s economy in 2025.

1. ​The rebasing of the GDP

​Midway through the year, the NBS reviewed the nation’s data through the rebasing. By rebasing the Gross Domestic Product (GDP) and the Consumer Price Index (CPI), the government finally began measuring the economy as it actually exists today—not as it was a decade ago.

​The NBS chose 2019 as the new base year for GDP to capture a stable pre-pandemic reality.

​For the first time, the official numbers gave weight to the digital economy, modular refineries, and even the informal activities of domestic households.

​By the third quarter, the economy grew by 3.98per cent, anchored by a dominant services sector that now accounts for over half of Nigeria’s national output.

Inflation had peaked near 35 per cent in December 2024, before the National Statistics Office revised its base year and adjusted the weighting of items in its price basket earlier this year.

​2. Exiting from the financial ‘grey list’

​In a major diplomatic and financial win, the Financial Action Task Force (FATF) in October removed Nigeria from its “grey list’, the Presidency confirmed. After three years of being tagged as a risky destination for “dirty money,” the exit signalled to global investors that Nigeria’s fight against money laundering was finally yielding results, potentially saving the country $30 billion in lost investments.

​3. The tax revolution

​In June, President Bola Tinubu signed the Tax Reform Act.

Rather than simply raising taxes, the law aimed to streamline the chaotic system. It sets the stage for a new fiscal era starting January 2026.

The ICIR reports that Nigeria’s new tax laws, effective January 1, 2026, aim to simplify tax compliance, broaden the tax base, and boost revenue.

The Nigeria Tax Act 2025 consolidates multiple tax laws, including Companies Income Tax, Personal Income Tax, and Value Added Tax, into a unified framework.

The reforms aim to promote fiscal stability, transparency, and accountability, while supporting economic growth and development. However, some concerns have been raised about potential alterations to the law and their impact on transparency and accountability.

​4. Protecting the markets

​This year witnessed the signing of the Investment and Securities Act (ISA) 2024, which replaced a 17-year-old law.

It gave the capital market more “teeth” to protect investors and, for the first time, provided a clear legal framework for digital and alternative assets, signalling Nigeria’s readiness for the future of finance.

​5. The banking fortress

​The Central Bank of Nigeria (CBN) turned up the heat on financial stability. By November, 16 banks had already hit their new capital requirements.

The ICIR reports that the apex bank had set March 31, 2026, as the deadline for all the banks to raise their capital base, giving a two-year period that started on April 1, 2024.

The apex bank pegged the minimum capital requirement for commercial banks with international exposure at N500 billion, commercial banks with national authorisation at N200 billion, regional banks and merchant banks at N50 billion, non-interest banks with national and regional operations at N20 billion and N10 billion, respectively.

The capital requirements can be through private placements, rights issues and/or offers for subscription, mergers and acquisitions (M&As), and/or upgrade or downgrade of license authorisation.

Meanwhile, the insurance sector faced a “fivefold” hike in capital demands, a move designed to weed out weak players and build a resilient insurance industry.

​6. Faster Money: T+2 Settlement

​In 2025, the  Nigerian equity market got a speed boost, moving from a T+3 to a T+2 settlement cycle. In simple terms, investors now get their money or stocks 24 hours faster than before, aligning Nigeria with international best practices and reducing risk.

​7. The refined power struggle

​The Dangote Refinery became the main character of Nigeria’s oil story with its price leadership role amid concerns of dominance of Nigerian-owned refineries. As it ramped up production, a tug-of-war emerged between the local giant and traditional fuel importers.

Dangote is at the heart of the battle with oil marketers. His story has been characterised by intense competition and power struggles in the country’s petroleum industry.

Aliko Dangote’s refinery, the largest in Africa, has been at the centre of a price war with traditional oil marketers, including the Nigerian National Petroleum Corporation Limited (NNPCL).

The conflict began when Dangote Refinery slashed the price of petrol, offering it at N739 per litre, significantly lower than the N828 per litre offered by other marketers.

This move was seen as a threat to the business interests of traditional marketers, who have long dominated the industry.

Dangote has accused some marketers of hoarding crude oil and demanding dollar payments, while also alleging that regulators are colluding with international traders to frustrate local refining efforts.

On the other hand, marketers have expressed concerns that Dangote’s pricing strategy is aimed at driving them out of business and creating a monopoly.

The dispute has led to a series of price cuts, with Dangote Refinery reducing its prices multiple times, citing the need to provide relief to Nigerians. The NNPCL has also reduced its prices, sparking a price war that has benefited consumers but caused significant losses to marketers.

The battle has also taken a legal turn, with Dangote Refinery suing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the issuance of import licenses to marketers.

​8. A London debut

​On July 9, GTBank made history by listing on the London Stock Exchange. The move was more than just a corporate milestone; it was a signal that, despite domestic struggles, Nigeria’s blue-chip institutions are still capable of competing on the global stage.