Nigeria’s Economy Expands 4.23% in Q2 2025, Beating Last Year’s Growth

Nigeria’s economy grew by 4.23% year-on-year in the second quarter of 2025, according to the latest report from the National Bureau of Statistics (NBS). The figure marks a stronger performance compared to the 3.48% growth recorded in Q2 2024, underscoring continued resilience in Africa’s largest economy.

The report highlights that the improved growth was driven by both the oil and non-oil sectors, with agriculture, financial services, construction, and trade playing significant roles. Real estate and construction activities also contributed, reflecting renewed demand for housing and infrastructure investment despite high financing costs. Analysts note that despite lingering inflationary pressures and foreign exchange challenges, Nigeria’s economic momentum has remained steady, reflecting stronger output and gradual recovery in key industries.

In quarterly terms, the economy also recorded modest expansion, signaling consistent improvement after a challenging start to the year. Economists suggest that policy reforms around investment, infrastructure, and monetary stability are beginning to filter through to the real economy.

Looking ahead, the Central Bank of Nigeria (CBN) projects the economy will expand by 4.17% in 2025, supported by ongoing reforms and stabilizing inflation. With global economic headwinds still present, observers say sustaining growth above 4% will require further stabilization of the naira, improvements in power supply, and continued support for the private sector.

The NBS report will likely be welcomed by policymakers as a sign of progress, but analysts caution that inclusive growth and job creation remain pressing priorities for the government as it navigates the rest of 2025.

By the Numbers: Nigeria’s Q2 2025 GDP

• Overall Growth: 4.23% year-on-year (vs. 3.48% in Q2 2024)

• Oil Sector: Modest recovery after previous declines, contributing to higher overall output

• Non-Oil Sector: Agriculture, financial services, construction, and trade provided the strongest boosts

• Real Estate & Construction: Sector saw steady contributions amid ongoing demand for housing and infrastructure projects

• Quarter-on-Quarter Performance: Continued expansion from Q1 2025, reflecting steady economic momentum

• Policy Context: Growth supported by reforms in investment climate, monetary adjustments, and infrastructure spending

• Full-Year Outlook: Central Bank expects 4.17% expansion in 2025, citing reforms and stabilizing inflation