Nigeria’s Gross Domestic Product (GDP) grew by 4.23 percent year-on-year in the second quarter of 2025, according to a report released by the National Bureau of Statistics (NBS) on Monday, September 22, 2025.
The rate represents an improvement over the 3.13 percent growth recorded in the first quarter of the year and the 3.48 percent posted in the same period of 2024, making it the fastest quarterly expansion in four years.
The bureau attributed the performance largely to higher crude oil production, which averaged 1.68 million barrels per day during the quarter, up from 1.41 million barrels per day in the corresponding period of 2024.
This lifted the oil sector, which expanded by 20.46 percent year-on-year compared with 10.08 percent in the second quarter of last year.
The non-oil economy also contributed to the growth, expanding by 3.64 percent in the quarter compared with 3.26 percent in Q2 2024.
Agriculture grew by 2.82 percent, industry by 7.45 percent, and services by 3.94 percent.
Services remained the largest contributor to GDP with 56.53 percent, followed by agriculture at 26.17 percent and industry at 17.31 percent.
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Commenting on the figures, Senior Economist at SPM Professionals, Paul Alaje, said the results underscore the positive impact of improved oil production and stronger industrial performance but warned that overreliance on crude oil could undermine long-term stability.
“While the second quarter performance is encouraging, Nigeria must continue to strengthen its non-oil sectors to build sustainable growth.
Oil remains a volatile source of revenue, and consistent policy reforms are critical for long-term stability,” Alaje said.
The NBS further noted that the recent rebasing of Nigeria’s GDP, which updated the base year from 2010 to 2019, provided a more accurate measurement of sectoral contributions.
Despite the improved headline growth, analysts caution that high inflation, foreign exchange volatility, and infrastructure constraints remain key risks that could weigh on economic performance in the coming quarters.