Nigeria’s Real GDP Grows by 4.23% in Second Quarter of 2025

Nigeria’s Real GDP Grows by 4.23% in Second Quarter of 2025

Nigeria’s real gross domestic product (GDP) grew by 4.23% in the second quarter of the fiscal year 2025, according to data released by the statistics office.

In a report, the National Bureau of Statistics (NBS) said the economy expanded further in the second quarter, with real GDP growing by 4.23% year on year, outpacing +3.13% growth posted in the first quarter of the year .

The latest figure shows an improvement from the 3.48 per cent growth recorded in the same quarter of 2024, indicating continued recovery and resilience in the economy.

According to the report, the agriculture sector grew by 2.82 per cent in real terms during the period under review, an increase from the 2.60 per cent recorded in the second quarter of 2024.

The industry sector also showed strong performance, growing by 7.45 per cent, compared to 3.72 per cent in the corresponding period of the previous year. Meanwhile, the services sector recorded a real growth of 3.94 per cent, slightly up from the 3.83 per cent posted in the second quarter of 2024.

 The share of the industry sector in the country’s GDP increased to 17.31 per cent in Q2 2025, higher than the 16.79 per cent recorded in the same quarter of 2024.

In nominal terms, aggregate GDP stood at N100.73 trillion in the second quarter of 2025, up from N84.48 trillion in the same period of the previous year, representing a nominal year-on-year growth of 19.23 per cent. The oil sector played a key role in driving growth during the quarter.

Average daily crude oil production rose to 1.68 million barrels per day, which is 0.27 million barrels higher than the 1.41 million barrels per day recorded in Q2 2024.

It also marked an increase from the 1.62 million barrels per day reported in the first quarter of 2025.

This increase in production translated to a real GDP growth of 20.46 per cent in the oil sector, up significantly from 10.08 per cent recorded in the same quarter of 2024, and a substantial jump from the 1.87 per cent posted in Q1 2025. The sector contributed 4.05 per cent to total GDP in the second quarter of 2025, compared to 3.51 per cent in Q2 of the previous year.

Further boosting the overall growth was the performance of the mining and quarrying subsector, which includes crude petroleum and natural gas, coal mining, metal ores, and quarrying of other minerals.

The subsector grew by 20.86 per cent in real terms, supported by a 50.41 per cent increase in quarrying and other minerals, and a 32.59 per cent rise in coal mining.

The sector’s overall contribution to GDP rose to 4.23 per cent in Q2 2025, up from 3.64 per cent in the same quarter of 2024. The non-oil sector also recorded steady progress, growing by 3.64 per cent in real terms in the second quarter of 2025.

This represents an increase from the 3.26 per cent posted in the corresponding period of 2024, and also higher than the 3.19 per cent growth posted in the first quarter of the year.

Growth in the non-oil sector was largely driven by positive activity in agriculture (crop production); information and communication (telecommunications); real estate; financial and insurance (financial institutions); trade; construction; and electricity, gas, steam and air conditioning supply.

Despite the growth, the non-oil sector’s share of real GDP declined slightly, contributing 95.95 per cent in Q2 2025, down from 96.49 per cent in the same period of 2024 and lower than the 96.03 per cent reported in the first quarter of 2025.

The NBS stated that the overall economic performance reflected stronger activity across key sectors, with notable gains in oil production and industrial output supporting the country’s growth trajectory.

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Sources: PAC Research