The Nigerian economy is undergoing a significant transformation, with several positive indicators pointing towards a brighter future. According to recent data, Nigeria is now the sixth-largest contributor to global GDP growth in 2025, a remarkable achievement ¹.
One of the key drivers of this growth is the country’s improving economic fundamentals. Inflation, which had reached a thirty-year high of 34.8% in December 2024, has fallen to a historic low of 15.2% in December 2025. This decline is a testament to the government’s efforts to stabilize the economy and control price pressures.
The Nigerian Stock Exchange has also seen significant growth, with its total market capitalization crossing the ₦100 trillion mark for the first time ever on January 5, 2026. This milestone is a reflection of the country’s growing economic clippancy and investor confidence.
The current administration has made significant contributions to Nigeria’s economic growth, adding $67 billion to the country’s GDP in less than two years. This represents a notable increase from ₦269.29 trillion in May 2023 to ₦372.8 trillion currently.
However, it’s essential to consider multiple perspectives and evaluate the country’s progress holistically. While these achievements are noteworthy, it’s crucial to address income inequality and ensure that growth is inclusive.
Nigeria’s economic transformation is a testament to the country’s resilience and potential. However, sustaining this growth momentum requires a multifaceted approach that addresses various challenges and leverages opportunities.
To maintain its economic growth trajectory, Nigeria must focus on diversifying its revenue streams and reducing its dependence on oil exports. The current administration’s efforts to improve the business environment and attract foreign investment are steps in the right direction. However, more needs to be done to address infrastructure gaps, enhance human capital development, and promote economic inclusivity.
Addressing income inequality is a critical aspect of promoting inclusive growth. Nigeria’s Gini coefficient has improved to 33.9%, better than the US and China. However, this progress is fragile and requires sustained efforts to ensure that growth benefits all segments of society. Investing in education, healthcare, and social safety nets can help reduce poverty and promote economic mobility.
The private sector has a vital role to play in driving economic development. By creating jobs, investing in innovation, and promoting entrepreneurship, businesses can contribute to Nigeria’s growth story. The government can support this effort by creating a conducive business environment, providing incentives for investment, and promoting public-private partnerships.
Ultimately, Nigeria’s economic future depends on its ability to leverage its strengths, address its challenges, and promote inclusive growth. By working together, the government, private sector, and civil society can unlock the country’s vast potential and create a brighter future for all Nigerians.
