Nigeria’s economy recorded a significant boost in the second quarter of 2025, with Gross Domestic Product, GDP, rising by 4.23 percent year-on-year, according to the latest report from the National Bureau of Statistics.
The figure, published on Monday, represents a marked improvement compared to the 3.48 percent growth recorded in the same quarter of 2024 and the 3.13 percent growth achieved in the first quarter of 2025.
Analysts say the performance points to a strengthening economy as reforms, sectoral rebounds, and improved oil production continue to reshape the country’s growth outlook.
The NBS attributed part of the acceleration to the recent rebasing of GDP, which now uses 2019 as the base year. This adjustment provided a fresh benchmark for quarterly estimates and better alignment of old and new data series, helping to capture structural changes in the economy more accurately.
Breaking down the numbers, the agriculture sector grew by 2.82 percent, slightly higher than the 2.60 percent recorded in the corresponding period of 2024. The improvement reflects moderate gains in crop production and livestock, despite challenges posed by insecurity in farming regions and climate pressures.
The industry sector delivered the standout performance of the quarter, expanding by 7.45 percent compared to 3.72 percent a year earlier.
ALSO READ: Nigeria’s GDP may hit $450bn by year-end
The surge was largely driven by higher oil output following months of production disruptions, as well as renewed activity in manufacturing and solid minerals. With the sector contributing 17.31 percent to the overall GDP in Q2 2025, its role in the recovery is becoming more pronounced.
Services, which remain the backbone of Nigeria’s economy, also maintained steady growth at 3.94 percent, compared to 3.83 percent in the second quarter of 2024. The sector’s expansion was supported by financial services, telecommunications, and trade, all of which continue to benefit from Nigeria’s youthful population and rising digital adoption.
In nominal terms, aggregate GDP at basic prices stood at N100.73 trillion, significantly higher than the N84.48 trillion recorded in the same quarter last year. This reflects a year-on-year nominal growth of 19.23 percent, underscoring the combined effect of inflationary pressures and underlying expansion in economic activities.
Economists say the Q2 performance offers cautious optimism, but risks remain. Persistent inflation, foreign exchange instability, and lingering insecurity could undermine momentum if not carefully managed. At the same time, reforms in fiscal management, energy, and trade are expected to further boost investor confidence.
For policymakers, the report provides evidence that Nigeria’s diversification agenda is gradually paying off, even as oil still plays a pivotal role in economic stability. The strong performance in industry, coupled with steady services growth, signals that the economy may be entering a more sustainable recovery path.
With the third quarter already underway, attention will shift to how Nigeria balances reforms, sectoral growth, and stability to maintain or even surpass the Q2 momentum.
Punch
