Nigeria Economy Picks Up Pace in Q2

The economy of Nigeria grew by 3.98% year-on-year in Q3 2025, slowing from a 4.23% expansion in the prior period, which was the strongest since Q2 2021. The non-oil sector, which contributed 96.6% to the GDP, rose by 3.91% in Q3, up from 3.64% in Q2, mainly boosted by agriculture (3.79% vs 2.82% in Q2); information and communication (5.78% vs 6.61%); real estate (3.50% vs 3.79%); financial and Insurance (19.63% vs 16.13%); trade (1.98% vs 1.29%); construction (5.57% vs 5.27%); and manufacturing (1.25% vs 1.60%). Meanwhile, the oil sector expanded by 5.84%, decelerating sharply from 20.46% in the previous period. The average daily crude oil production reached 1.64 million barrels per day in Q3, below 1.68 million bpd in Q2 but higher than 1.47 million bpd in Q3 2024.

The economy of Nigeria expanded by 4.23% year-on-year in Q2 2025, up from 3.13% in the previous period, reflecting stronger momentum after a rebasing of the national accounts using 2019 as the base year. This represents the highest quarterly growth since Q2 2021, fueled by a 7.45% expansion in the industrial sector, largely driven by oil. Crude oil production averaged 1.68 million barrels per day—the highest since 2020—helping the oil sector surge 20.46%. At the same time, the services sector, which accounts for over half of GDP, grew by 3.94% in Q2, led by robust growth in telecommunications, information services, real estate, and financial services. Meanwhile, agricultural activity advanced by 2.82%.

Nigeria’s economy expanded by 3.13% year-on-year in the first quarter of 2025, accelerating from 2.27% in the same period last year. The services sector remained the key growth engine, rising 4.33% and contributing 57.5% to GDP. Within services, telecommunications and information services posted a robust 7.40% expansion, accounting for 10.59% of overall output. The industrial sector gained further traction, rising 3.42% (vs. 2.35% in Q1 2024). However, growth in the oil sector moderated to 1.87% (vs. 4.71%). Meanwhile, the manufacturing sector recorded a modest pickup of 1.69% (vs. 0.11%), contributing 9.62% to GDP. Key drivers included food, beverage and tobacco, chemical and pharmaceutical products, and cement. Moreover, the agriculture sector edged up 0.07%, rebounding from a 1.79% contraction in Q1 2024.