Nigeria’s Economy Grows 4.23% in Q2 2025

In its Q2 2025 Gross Domestic Product (GDP) report released on September 22, 2025, the National Bureau of Statistics (NBS) announced that Nigeria’s economy grew by 4.23% year-on-year, up from 3.13% in Q1 2025 and 3.48% in Q2 2024. This growth reflects gains across both the oil and non-oil sectors. The oil sector, in particular, recorded a remarkable 20.46% growth compared with the same period last year, rebounding sharply from just 1.87% in Q1 2025. It contributed 4.05% to total GDP, up from 3.51% in Q2 2024, supported by an increase in average daily oil production to 1.68 million barrels, up from 1.41 million barrels in the same period last year. On a quarter-on-quarter basis, the oil sector grew 6.01%, showing the positive effect of rising oil output on the economy.

The NBS also highlighted that this report follows the recent rebasing of Nigeria’s GDP, which updated the base year to 2019. Rebasing is a technical adjustment that aligns previous GDP estimates with new data, offering a more accurate reflection of economic activity and sector contributions. This process allows analysts, policymakers, and the public to better understand how different parts of the economy are performing.

While the oil sector drove a strong performance, non-oil sectors remain central to Nigeria’s economy. In Q2 2025, the non-oil sector grew by 3.64%, accounting for 95.95% of total GDP. Agriculture, industry, and services contributed significantly, growing by 2.82%, 7.45%, and 3.94% respectively. This highlights Nigeria’s diversified economic structure, showing that growth is not solely reliant on oil.

Government officials described the Q2 figures as proof that policy reforms are starting to work, helping stabilize the economy and promote diversification. They emphasized that reforms in production, regulation, and infrastructure are creating a stronger foundation for both oil and non-oil sectors. Analysts, however, cautioned that long-term growth will depend on continued structural reforms and a gradual reduction in dependence on oil revenues.

The upcoming reports for the remaining quarters will be crucial in determining whether this positive momentum continues. Sustained growth across oil and non-oil sectors could strengthen Nigeria’s overall GDP and translate into improved living standards, job creation, and poverty reduction. While the Q2 report shows encouraging signs, consistent policy implementation will be essential for turning this economic recovery into tangible benefits for Nigerians.