Nigeria’s economy grew by 4.07% year-on-year in real terms in the fourth quarter of 2025, according to the latest Gross Domestic Product (GDP) report released Friday by the National Bureau of Statistics (NBS).
The figure represents an improvement from the 3.76% recorded in Q4 2024, signaling stronger year-end performance.
Full-year GDP growth stood at 3.87%, compared to 3.38% in 2024. In nominal terms, GDP reached ₦122.81 trillion in Q4 2025, up 17.55% from ₦104.48 trillion in Q4 2024.
Agriculture expanded by 4.00%, industry by 3.88%, and services by 4.15%, with services contributing 55.92% of total GDP.
The oil sector recorded real growth of 6.79% in Q4 2025, up from 2.08% in Q4 2024, though it contracted 6.30% quarter-on-quarter.
Average daily crude oil production was 1.58 million barrels, higher than Q4 2024 but below Q3 2025. For the full year, oil sector growth stood at 8.50%, contributing 3.53% to GDP.
The non-oil sector remained dominant, growing 3.99% in Q4 2025 and contributing 97.13% to GDP.
Growth was driven by crop production, telecommunications, real estate, trade, financial institutions, construction, transport, and food and beverage manufacturing.
Cautious and Optimistic Reactions
Global institutions expressed cautious optimism. The IMF projects Nigeria’s economy will grow by 3.9% in 2025 and 4.2% in 2026.
The World Bank forecasts 4.4% growth in 2026 and 2027, reflecting confidence in Nigeria’s medium-term prospects.
Finance Minister Wale Edun welcomed the NBS data, noting that about 30 subsectors recorded growth above 3%.
“Growth is now broad-based, and the economy continues to hold above 4%,” he said. He attributed the performance to reforms under President Bola Tinubu, citing improved macroeconomic stability, fiscal discipline, and investor confidence.
Agriculture benefited from improved security and access to inputs, while industry was supported by energy reforms and stronger foreign exchange liquidity.
Services expanded on the back of finance, telecommunications, and technology. For the full year, Nigeria’s nominal GDP rose to ₦441.5 trillion from ₦372.8 trillion in 2024.
Edun said the results send a strong signal to investors and multilateral institutions.
“With improving macroeconomic coordination, strengthening revenue mobilisation, enhanced transparency in public finance, and ongoing structural reforms, Nigeria is positioning itself as a stable and competitive destination for long-term capital,” he added.
Economists note that sustaining growth above 3% across multiple sectors is a milestone for investor confidence.
They argue that diversification across agriculture, industry, and services may encourage further inflows of foreign capital.
Challenges remain, including double-digit inflation and energy supply bottlenecks. However, officials say the breadth of expansion shows Nigeria is navigating these constraints more effectively than in previous years.
The finance ministry reiterated its commitment to disciplined reform implementation and transparent engagement with stakeholders.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
