Nigeria’s economy expanded modestly in the third quarter (Q3) of 2025, buoyed by the growth in services, agriculture, and industries.
Gross Domestic Product (GDP) surged to 3.98 percent year-on-year in Q3, compared to 3.86 percent it recorded in the corresponding period last year, according to new data released by the National Bureau of Statistics on Monday.
On a quarterly review, the economy, however, contracted by 0.25 percent, up from 4.23 percent—the highest in four years from the second quarter. That’s up from 3.13 percent it recorded between January to March after authorities embarked on a rebasing exercise that took place in July, which aims to reflect structural changes in Africa’s most populous nation.
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The oil sector grew to 5.84 percent compared to 5.66 percent in the same period last year. The annual growth was supported by the rising average daily oil production, which grew by 1.64 million barrels per day (mbpd), higher than the daily average production of 1.47 mbpd recorded in the same quarter of last year.
But the sector’s share of GDP slipped to 3.44 percent in Q3, highlighting Nigeria’s continued reliance on non-oil activities.
The non-oil sector expanded by 3.91 percent in the quarter being reviewed, supported by 4.15 percent growth year-on-year in services and in industry, while agriculture grew 3.77 percent.
In the quarter under review, crop production, trade, and real estate were the top three contributing sectors to the GDP, with 23.06 percent, 16.42 percent, and 13.36 percent, respectively.
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According to the NBS, GDP grew to N113.59 trillion in nominal terms. This performance is higher when compared to the third quarter of 2024, which recorded an aggregate GDP of N96.16 trillion, indicating a year-on-year growth of 18.12 percent, while real GDP stood at N57.03 trillion in the quarter under review.
Nigeria is making progress in revamping its economy, with inflation slowing for the seventh consecutive month to 16 percent in October, the naira experiencing stability, and interest rates now at a range where an easing cycle could begin.
The World Bank has, however, warned that while the nation’s bold reforms are restoring macroeconomic stability and propelling growth estimated to end the year at 4.2 percent, more action is needed to improve citizens’ purchasing power and tame rising food prices.