Nigeria’s Gross Domestic Product (GDP) grew by 3.13% year-on-year in real terms in the first quarter of 2025, according to the latest report by the National Bureau of Statistics (NBS).
This marks a solid improvement from the 2.27% growth recorded in Q1 2024 and reflects the continued resilience of the economy, underpinned by strong performances in the services and industry sectors.
In nominal terms, GDP rose to N94.05 trillion in Q1 2025 from N79.51 trillion in Q1 2024, representing a year-on-year increase of 18.30%.
The report read, “Gross Domestic Product (GDP) grew by 3.13% (year-on-year) in real terms in the first quarter of 2025. This growth rate is higher than the 2.27% recorded in the first quarter of 2024.”
The latest figures follow the successful rebasing of Nigeria’s national accounts to 2019 prices from the previous 2010 base year, which the NBS says is necessary to ensure that the National Accounts reflect a more accurate and current picture of the structure of the economy.
Services sector remains dominant
The services sector continued to dominate economic output, growing by 4.33% year-on-year and contributing 57.50% to real GDP.
Telecommunications and Information Services were again a standout performer, expanding by 7.40% in real terms and accounting for 10.59% of GDP, compared to 10.17% in Q1 2024. The Finance and Insurance sector saw robust growth of 15.03%, driven by digital innovation, broader financial inclusion, and improved operational efficiencies in banks and fintechs.
Trade, Real Estate, and Transportation also contributed positively. Trade grew by 1.78%, contributing 18.21% to GDP, while Real Estate rose 4.61%, and the transportation sector surged by 14.08%, buoyed by positive growth across all its sub-segments road, rail, air, water, and pipelines.
Industry rebounds, oil slows
The industry sector recorded a year-on-year growth of 3.42% in Q1 2025, compared to 2.35% in Q1 2024. Within the sector, oil production averaged 1.62 million barrels per day (mbpd), an increase from 1.57 mbpd in the same period of 2024. However, this did not translate to stronger real growth. The oil sector’s real GDP growth decelerated to 1.87%, down from 4.71% a year earlier, with its share of total GDP declining slightly to 3.97% from 4.02%.
On the positive side, the manufacturing sector posted a real growth of 1.69%, led by sub-sectors such as Food, Beverage and Tobacco (3.48%), Chemical and Pharmaceutical Products (5.33%), and Cement (4.94%). The manufacturing sector contributed 9.62% to GDP in real terms.
The construction sector remained strong with 6.21% growth, reflecting a combination of government infrastructure projects and ongoing real estate development.
Agriculture remains sluggish
Agriculture, which still employs a large portion of the labour force, grew marginally by 0.07% in real terms better than the -1.79% contraction recorded in Q1 2024 but still far from its potential. In nominal terms, the sector contributed 19.40% to GDP, down from 20.86% in Q1 2024.
Crop production, the largest sub-sector in agriculture, saw 3.71% real growth, while livestock, forestry, and fishing recorded mixed performances. Security concerns in key farming belts and poor mechanisation continue to weigh on the sector’s growth prospects.
Strong growth in niche sectors
Other sectors with notable performances include:
- Electricity, Gas, Steam, and Air Conditioning Supply, which grew by 18.65%—a sharp rise from 2.49% in Q1 2024.
- Water Supply, Sewerage, Waste Management, and Remediation, up by 9.43%.
- Arts, Entertainment and Recreation, which posted 9.63% real growth.
- Accommodation and Food Services, expanding by 2.65%.
On the flip side, Other Services contracted by 6.13%, while Public Administration grew modestly by 1.83%. Professional, Scientific and Technical Services slowed to 2.53%, down from 5.71% a year earlier.
