Nigeria’s Economy Grows by 3.13% in Q1 2025 Despite Macroeconomic Challenges
Nigeria’s Gross Domestic Product (GDP) grew by 3.13% in real terms year-on-year in the first quarter of 2025, according to the National Bureau of Statistics (NBS). This growth rate is higher than the 2.27% recorded in the first quarter of 2024.
The NBS report attributed the growth to a mix of services, agriculture, and industrial output, with the services sector expanding by 4.33% and contributing 57.50% to the total GDP.
The growth was driven mainly by telecommunications, real estate, financial institutions, trade, construction, and food, beverage, and tobacco manufacturing.
The agriculture sector showed a modest growth of 0.07%, a significant improvement from a 1.79% contraction in the same period last year. The industry sector also expanded by 3.42% compared to 2.35% in Q1 2024, driven by manufacturing and other industrial activities.
The rebased figures have recalibrated the economic landscape, pushing Nigeria’s nominal GDP to N94.05 trillion in Q1 2025, offering a more accurate reflection of its current economic structure.
The non-oil sector grew by 3.19%, up from 2.17% in Q1 2024, accounting for 96.03% of real GDP in Q1 2025.
Despite the growth, Nigeria’s economy faces persistent macroeconomic challenges, including massive inflation and naira volatility. The oil sector remains volatile amid global market uncertainties, with Nigeria’s average daily crude oil production rising to 1.62 million barrels per day in Q1 2025.
The growth signals a resilient economy navigating global challenges, with non-oil sectors driving growth and oil production showing modest gains.
