Nigeria’s GDP Growth Slows to 3.98% in Q3 2025 as Cardoso Highlights Economic Milestones
Story: written by Zara December 5,2025
Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has reported a slower pace of economic growth for the country in the third quarter of 2025, even as key indicators show continued positive momentum.
Speaking before the Senate Committee on Banking, Insurance and Other Financial Institutions, Cardoso disclosed that Nigeria’s Gross Domestic Product (GDP) expanded by 3.98% in Q3 2025. While this is an improvement from the 3.86% recorded in the same period last year, it represents a 0.25 percentage point decline from the 4.23% growth in Q2 2025.
Cardoso attributed the year-on-year gains to stronger performance in several sectors, including crop production, ICT, real estate, and financial and insurance services, which collectively drove broad-based economic growth.
He also highlighted significant progress in the foreign exchange market, noting that CBN reforms had stabilised the market, restored investor confidence, and encouraged foreign capital inflows.
“The FX market stabilised following reforms, boosting investor confidence and foreign inflows, which supports broader economic activity,” he said.
The CBN governor reported that Nigeria’s external reserves rose sharply, reaching US$46.7 billion by mid-November 2025, the highest level in nearly seven years, providing roughly 10.3 months of import cover. Diaspora remittances also surged by 66.7%, rising from about US$200 million per month to nearly US$600 million per month.
Cardoso further revealed the resolution of the US$7 billion verified FX backlog, a move that restored credibility in the financial system and contributed to foreign capital inflows of US$20.98 billion in the first ten months of 2025—a 70% increase over 2024 and a 428% rise compared to 2023, boosting FX liquidity, investor confidence, and Nigeria’s credit profile.
Additionally, he celebrated Nigeria’s removal from the FATF grey list, citing it as a major step toward strengthening international trust. “This milestone reduces compliance burdens on correspondent banks, improves access to global finance, and facilitates cross-border payments and remittances,” Cardoso explained.
The governor also noted that ongoing bank recapitalisation efforts are yielding results, with most banks meeting new capital requirements, further supporting economic resilience and sustainable growth.
