Nigeria’s economy expanded by 4.23 percent year-on-year in the second quarter of 2025, its fastest pace in four years, according to the latest data released by the National Bureau of Statistics (NBS). The growth was powered largely by non-oil sectors, while the oil industry also recorded a rebound that supported the overall performance.
Trade emerged as the single largest contributor to real GDP, accounting for 18.28 percent, followed closely by crop production which contributed 17.80 percent. Together, these two sectors underscored the continued dominance of commerce and agriculture in driving output. Real estate services also retained a significant role in the economy with a 12.80 percent share, reflecting sustained investments in property development and housing.
The telecommunications and information services sector added 11.18 percent, highlighting the rapid expansion of Nigeria’s digital economy, powered by increasing internet penetration, mobile connectivity and fintech adoption. Agriculture’s contribution extended beyond crops, with the livestock sub-sector accounting for 5.90 percent of total GDP, underscoring the role of food production in supporting both livelihoods and national output.
Although non-oil activity remained dominant, the crude petroleum and natural gas sector bounced back, contributing 4.05 percent and helping to lift overall growth. Construction followed with 3.60 percent, supported by infrastructure spending and private sector building activities, while food, beverage and tobacco manufacturing added 2.87 percent. Financial institutions and insurance services, which recorded one of the strongest growth rates in recent years, contributed 2.84 percent, and public administration closed the quarter’s top contributors at 2.73 percent.
Overall, the non-oil sector accounted for 95.95 percent of real GDP, showing that Nigeria’s growth remains largely diversified away from crude oil. However, analysts caution that while the numbers reflect resilience and expansion, challenges such as high inflation, cost of living pressures, and limited industrial capacity continue to affect households and businesses.
The Q2 results underline both the progress and fragility of the Nigerian economy. On one hand, sectors such as ICT, finance, real estate and agriculture continue to deepen their roles as engines of growth. On the other, the renewed contribution of oil, though relatively smaller in share, remains a reminder of the economy’s exposure to global price volatility. Policymakers are therefore urged to consolidate gains in the non-oil sector, stimulate industrial diversification, and ensure that the benefits of growth translate into improved welfare for citizens.
