Nigeria’s economy expanded by 4.07 percent in real terms in the fourth quarter of 2025, according to new data released by the National Bureau of Statistics (NBS).
The performance marks an improvement from the 3.76 percent recorded in the same period of 2024 and reflects stronger output across agriculture, industry and the oil sector, even as services growth slowed slightly.
On a full-year basis, Africa’s largest economy grew by 3.87 percent in 2025, up from 3.38 percent in 2024 — suggesting gradual recovery momentum despite persistent inflation and structural pressures.
The NBS said the latest figures follow the rebasing of Nigeria’s Gross Domestic Product (GDP) to 2019 as the new base year, with past quarterly estimates benchmarked accordingly to align with the updated methodology.
Growth in the fourth quarter was driven largely by improvements in both oil and non-oil activities.
The oil sector grew by 6.79 percent year-on-year, a sharp increase from 2.08 percent in the same quarter of 2024. Average daily crude oil production rose to 1.58 million barrels per day, compared with 1.54 million barrels per day a year earlier. However, oil still accounted for just 2.87 percent of total real GDP, underscoring the economy’s continued reliance on non-oil sectors.
The non-oil sector, which makes up over 97 percent of the economy, expanded by 3.99 percent, slightly higher than the 3.80 percent recorded a year earlier.
Agriculture recorded notable improvement, growing by 4.00 percent compared with 2.54 percent in the fourth quarter of 2024. The sector contributed 28.66 percent to real GDP during the quarter.
Industry also strengthened, expanding by 3.88 percent, up from 2.49 percent a year earlier. Mining and quarrying, construction and manufacturing all posted positive growth, although manufacturing remained relatively modest.
The services sector — Nigeria’s largest economic segment — grew by 4.15 percent, slightly below the 4.75 percent recorded in the corresponding quarter of 2024. Services accounted for 55.92 percent of GDP in real terms, maintaining its dominant position.
In nominal terms, aggregate GDP stood at ₦122.81 trillion in the fourth quarter of 2025, representing a 17.55 percent increase from ₦104.48 trillion recorded a year earlier.
The latest data signal broad-based expansion across key sectors, with stronger oil output and improving agricultural performance helping to lift overall growth. However, the pace of expansion remains moderate relative to Nigeria’s population growth and development needs, suggesting that while momentum is improving, deeper structural reforms will be crucial to sustain higher growth levels in the years ahead.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.