Nigeria’s economy accelerated to 4.23% year-on-year growth in Q2 2025, beating the 3.13% recorded in Q1 and 3.48% in Q2 2024, according to National Bureau of Statistics (NBS) data.
The rebound was powered by surging performance in coal mining, quarrying, and rail transport, signaling renewed investment and infrastructure gains across key industries.
Coal mining led the pack, soaring 57.53% after four quarters of contraction, driven by revived power-sector demand, mine rehabilitation, and energy diversification investments. Rising global prices and domestic energy shortages pushed manufacturers to increase local coal usage, especially for industrial boilers and backup generation.
The non-oil economy expanded by 3.64% in Q2 2025, improving by 0.45 percentage points from 3.19% in Q1, highlighting strengthening domestic demand and broader economic recovery outside the petroleum sector.
The Q2 2025 GDP results underscore a broad-based economic rebound driven by extractive industries, energy, and transport services. Also, spillovers from Q1 reforms—like tariff adjustments, infrastructure spending, and security improvements—continued to strengthen growth.
Below are the fastest growing sectors of the economy as of second quarter of 2025.
The 10 fastest growing sectors of Q2 2025
Despite moderating from Q1’s 18.65% expansion, the power sector maintained its recovery following Q4 2024’s contraction. Grid stability strengthened, with no system disturbances reported through Q1–Q2.
According to the Nigerian Electricity Regulatory Commission (NERC), average available generation capacity across grid-connected plants rose by 69.99 MW (+1.32%), climbing from 5,296.89 MW in Q4 2024 to 5,366.88 MW in Q1 2025.
Fifteen plants recorded higher output levels during the period. April’s tariff adjustments and subsidy reforms bolstered sector finances, while industrial hubs with heavy demand saw the most significant reliability improvements.
