Nigeria’s Economy Grew by 4.23% in Q2 2025
Nigeria’s economy increased by 4.23% in Q2 2025, the fastest pace under the current administration and the strongest since Q2 2021. Growth was powered by the non-oil sector, which contributed 3.49% points and made up nearly 96% of total output.
The oil sector also staged a recovery, growing by 20.46% on improved production as oil theft and vandalism eased.
Now, the question is: can this momentum be sustained or will it taper as it did then?
Shifts in Sectoral Composition
Services remained the largest contributor to GDP at 56.53% but slipped slightly due to weaker trade and real estate activity. Agriculture gained ground, rising to 26.17%, supported by livestock and fishing which recovered from earlier contractions.
Transportation recorded strong double-digit growth across three subsectors, while mining and quarrying also ranked high, reflecting improved crude oil and gas output. Trade, crop production, and real estate remained the top three contributors to GDP distribution.
Where Contractions Persisted
Metal ores contracted by –6.96%, reversing the 25.20% growth in Q1, as weaker demand and lower prices hit the sector. Textiles, apparel, and footwear remained weighed down by structural challenges, though the contraction moderated, motor vehicles and assembly shrank, reversing Q1’s growth as elevated import costs curbed demand.
Outlook
Growth faces both headwinds and tailwinds. Oil price volatility, insecurity, and structural gaps remain key risks, while easing inflation, stronger reserves, and monetary support provide balance.
GDP growth is expected to ease slightly in Q3 2025, with crude oil output trending lower. Non-oil activity is projected to remain stable.