Hard reforms are beginning to show results in Nigeria, as inflation eases, the currency steadies, and investors take a second look at Africa’s largest economy.
NTA correspondent Musa Abubakar reviews the key monetary reforms that shaped 2025.
2025 has emerged as a defining year for Nigeria’s monetary policy journey.
A year marked by bold reforms, tough decisions and a renewed push to restore price stability, rebuild confidence in the financial system, and support a sustainable economic recovery.
At the heart of these reforms is a firm commitment to discipline and data-driven decision-making.
Throughout 2025, the Monetary Policy Committee maintained a tight policy stance—raising interest rates to tame inflationary pressures fueled by rising food prices, exchange-rate pass-through, and global supply disruptions.
These measures are beginning to yield results. Inflation has shown signs of easing, though food prices remain a major concern for Nigerian households.
To restore confidence in the foreign exchange market, the Central Bank rolled out far-reaching reforms.
Central among them the Nigeria Foreign Exchange Code designed to enforce ethical conduct, improve transparency, and strengthen market discipline among FX dealers.
Clearer FX reporting and greater transparency in remittance inflows have boosted liquidity, reduced speculation, and reinforced a more market-reflective exchange-rate regime.