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Nigeria Records Stronger Economic Growth in 2025
Nigeria’s economy recorded a robust 3.9 per cent year-on-year growth in 2025, rising from 3.4 per cent in 2024, according to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS).
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The improved performance was driven by stronger activity across both oil and non-oil sectors, reflecting growing resilience and a gradual strengthening of economic fundamentals.
Oil and Non-Oil Sectors Drive Upward Momentum
Data from the NBS showed that the oil sector expanded by 8.5 per cent in 2025, compared to 5.5 per cent in 2024, while the non-oil sector grew by 3.7 per cent, up from 3.3 per cent the previous year.
The non-oil economy remained the backbone of national output, accounting for over 95 per cent of GDP in 2025, underscoring Nigeria’s continued shift away from oil dependency.
Telecoms Anchor Non-Oil Growth
The telecommunications sector emerged as a primary driver of Nigeria’s economic performance in 2025, anchoring growth within the non-oil segment and making a significant contribution to the 3.9–4.07 per cent GDP growth range recorded during the year.
The NBS identified telecoms as a key pillar supporting services-sector expansion, reinforcing the sector’s strategic role in Nigeria’s digital and economic transformation.
Q4 2025 GDP Growth Accelerates to 4.07%
Nigeria’s GDP expanded by 4.07 per cent in real terms year-on-year in the fourth quarter (Q4) of 2025, outperforming the 3.76 per cent growth recorded in the corresponding period of 2024.
For the full year, the economy grew by 3.87 per cent, up from 3.38 per cent in 2024, reflecting stronger activities across agriculture and industry, despite a slight moderation in services growth.
Sectoral Performance Highlights
- Agriculture: Grew by 4.00 per cent in Q4 2025, up from 2.54 per cent in Q4 2024, driven largely by crop production, which accounted for 64.75 per cent of agriculture’s nominal output.
- Industry: Expanded by 3.88 per cent in Q4 2025, compared to 2.49 per cent in Q4 2024.
- Services: Grew by 4.15 per cent in Q4 2025, slightly lower than the 4.75 per cent recorded a year earlier, yet remained the largest contributor to GDP at 55.92 per cent.
Aggregate GDP at basic prices stood at ₦122.81 trillion in nominal terms in Q4 2025, representing a year-on-year growth of 17.55 per cent.
Oil Sector Output Improves Despite Quarterly Dip
Nigeria recorded an average daily oil production of 1.58 million barrels per day (mbpd) in Q4 2025, higher than the 1.54 mbpd recorded in Q4 2024, though slightly below the 1.64 mbpd achieved in Q3 2025.
The oil sector grew by 6.79 per cent year-on-year in real terms in Q4 2025, compared to 2.08 per cent in the same period of 2024, although it contracted by 6.30 per cent on a quarter-on-quarter basis.
For the full year, oil sector growth stood at 8.50 per cent, contributing 3.53 per cent to GDP, up from 3.38 per cent in 2024.
Non-Oil Sector Maintains Dominance
The non-oil sector expanded by 3.99 per cent in real terms in Q4 2025, supported by crop production, telecommunications, real estate, trade, financial services, construction, road transport, and manufacturing of food, beverages, and tobacco.
It contributed 97.13 per cent to real GDP in Q4 2025 and 96.47 per cent for the full year, reaffirming its central role in Nigeria’s economic structure.
Telecoms Post Exceptional Growth in 2025
Within the Information and Communications (ICT) industry, the telecommunications sector delivered remarkable performance, recording 24.96 per cent real growth in 2025, up sharply from 12.68 per cent in 2024.
Key highlights include:
- GDP Contribution: ICT contributed 10.07 per cent to real GDP in 2025, with telecoms accounting for 7.29 per cent.
- Quarterly Surge: Telecoms recorded 26.34 per cent year-on-year growth in Q4 2025.
- Data Revenue Boom: Data earnings grew by as much as 85.6 per cent year-on-year in some quarters, driven by rising data consumption.
- Broadband Expansion: Active broadband subscriptions reached 105.1 million by August 2025, translating to a penetration rate of 48.81 per cent.
- Infrastructure Investment: Operators deployed over 2,800 new and upgraded network sites in 2025.
- Profit Recovery: Major operators, including MTN Nigeria, reported strong profit rebounds after a challenging 2024, driven by higher data revenue and tariff adjustments.
Outlook: Gradual Strengthening of Economic Activity
The NBS noted that following the rebasing of GDP using 2019 as the base year, quarterly estimates were aligned with rebased annual figures to provide a consistent comparison.
Overall, Nigeria’s Q4 2025 and full-year performance signal a gradual strengthening of economic activities, supported by improved oil output and sustained resilience in key non-oil sectors—particularly telecommunications—positioning the economy for a more stable growth trajectory.
