The first half of 2025 was defined by a challenging but transformative global and domestic financial environment. Globally, economic growth remained fragile, with the IMF’s April 2025 World Economic Outlook projecting global GDP growth at 3.2%, while the Organisation for Economic Co-operation and Development (OECD) revised its forecast downwards to 2.9% from 3.1% due to persistent geopolitical tensions, trade fragmentation, and higher tariffs introduced by the Trump administration. Inflation in advanced economies has slowed to around 4.2%, yet major central banks, including the U.S. Federal Reserve and the European Central Bank, have kept interest rates elevated to guard against price shocks.Global geopolitical tensions driven by the prolonged Russia–Ukraine war, escalating U.S.–China trade frictions, and instability in the Middle East continue to exert pressure on commodity markets and capital flows.
Amid these global headwinds, Nigeria demonstrated cautious resilience. Reform-driven policies ranging from fiscal restructuring to FX market liberalization have strengthened macroeconomic stability and renewed investor confidence. Key milestones, including the signing of the Nigeria Tax Reform Act 2025, signing of the Investments and Securities Act 2025, robust sovereign bond issuances, and the launch of sustainable finance instruments such as; Series VII Sukuk and the third Green Bond, marked Nigeria’s determination to deepen its financial markets. Meanwhile, regulatory advancements, particularly in digital finance and open banking, have positioned the country’s fintech ecosystem for structural scaling and regional influence.
Collectively, these global and domestic dynamics have placed Nigeria’s financial sector at an inflection point, characterisedby macro resilience, regulatory advancement, and growing digital transformation. The outlook for the second half of 2025 will hinge on policy consistency, stable commodity prices, and a proactive response to global economic shifts.