The Nigerian Economic Summit Group, NESG, has advised the Federal Government to strengthen domestic revenue mobilisation and improve fiscal efficiency to secure macroeconomic stability.
In its Macroeconomic Condition Monitor released Thursday, NESG said Nigeria’s economy has moved from sharp adjustment in 2024 toward gradual stabilisation in 2025, driven largely by exchange rate stability and improved capital flows.
The group noted that major reforms between 2023 and 2024 — including exchange rate liberalisation, subsidy removal, monetary tightening and fiscal restructuring — initially deepened economic pressure but are now beginning to ease systemic imbalances.
NESG’s Macroeconomic Condition Index, MCI, improved from –3.0 points in 2024 to –2.0 points in 2025, with steady quarterly gains across the year.
It said the External Sector Index turned positive at *+0.9 points in Q4-2025, reflecting a more stable exchange rate and better capital inflows.
However, the fiscal sector remains the weakest link, while the Fiscal Sector Index fell further to –7.1 points in 2025, highlighting persistent debt-service pressures and limited revenue space.
“The real sector also shows modest recovery, with inflationary pressures easing slightly and output conditions improving marginally,” NESG said. “But productivity constraints and high costs continue to limit growth.”
The Monetary and Financial Sector Index stayed stable at +0.5 points, supported by tighter monetary policy, though high borrowing costs still restrict credit flow to businesses.
The group said that while 2025 marks a shift from acute stress to early stabilisation, deep fiscal vulnerabilities and a still-weak real sector mean the recovery remains fragile.
