nigeria">Nigeria’s economy grew by 3.98 percent in the third quarter of 2025, reflecting a measure of resilience despite persistent challenges across key sectors. The latest figures, released by the National Bureau of Statistics, show modest but steady progress driven largely by agriculture">agriculture and industry.
This performance marks a slight improvement over the 3.86 per cent recorded in the same quarter of 2024. However, it falls short of the 4.23 per cent achieved in the second quarter of 2025, indicating that while the economy is still moving forward, its momentum has slowed.
In nominal terms, without adjusting for inflation, nigeria">Nigeria’s GDP climbed to N113.587 trillion, up from N96.160 trillion in the same period last year. This represents an 18.12 per cent increase, highlighting the continued impact of inflation on overall economic activity.
agriculture">Agriculture posted a solid performance, growing by 3.79 per cent, compared to 2.55 per cent last year. From cassava farms in the Middle Belt to rice fields in the North, farmers contributed to this rise despite security concerns in some communities. Favourable rainfall also supported better crop output.
The industrial sector expanded by 3.77 percent, a notable improvement from the 2.78 percent recorded a year earlier.
Manufacturing plants, factories, and construction projects helped drive this growth, although operators continue to face serious challenges, including high energy costs and infrastructure gaps.
Services remained the largest contributor to national output, growing by 4.15 percent and accounting for 53.02 percent of the entire economy.
This sector spans banking, telecommunications, transport, retail, entertainment, and more—over half of everything nigeria">Nigeria produces.
Oil production delivered a mixed performance. Output averaged 1.64 million barrels per day, higher than the 1.47 million barrels recorded last year but slightly below the 1.68 million barrels posted in the second quarter of 2025.
Year-on-year, the oil sector grew by 5.84 percent, but it contracted by 5.53 percent from the previous quarter.
Despite ongoing issues like vandalism and theft, crude oil now contributes just 3.44 per cent to total real GDP, showing how far the economy has diversified.
The non-oil sector remained the backbone of the economy, growing by 3.91 per cent and contributing 96.56 per cent to total real GDP. This includes agriculture">agriculture, telecommunications, real estate, trade, construction, manufacturing, and other activities not tied to petroleum.
Construction surged impressively, recording 21.23 per cent nominal growth. Across major cities—Lagos, Abuja, and Port Harcourt—new buildings, bridges, and road expansions are visible signs of this momentum despite soaring material costs.
Trade grew by 19.27 per cent, reflecting nigeria">Nigeria’s vibrant commercial culture. From bustling markets in Onitsha to roadside stalls in Kano, trading activities remain a major driver of income.
According to The Gazette News (nigeria">Nigeria), transportation and storage followed closely with 24.35 percent nominal growth across road, rail, air, water, and courier services.
Professor Uche Uwaleke, Executive Director at the Institute of Capital Markets, Nasarawa State University, described the Q3 report as “broadly positive” but noted that significant challenges remain, especially in manufacturing.
He highlighted that manufacturing growth
“remains below 2%, constrained by structural bottlenecks such as inadequate energy supply, poor transport infrastructure, and limited access to credit.”
These issues echo the daily experiences of factory owners who battle unreliable power, high diesel costs, bad roads, and prohibitive interest rates.
Prof. Uwaleke also stressed the need for job-creating policies. agriculture">Agriculture, construction, and manufacturing, he argued, can employ millions if properly supported.
He added that investments in education and healthcare are essential, pointing out that GDP growth means little if citizens do not feel improvements in their daily lives.
For many Nigerians, this point hits home. The economy may have grown by nearly 4 per cent, but inflation continues eroding purchasing power.
Food, transport, school fees, and healthcare costs remain painfully high, making it difficult for families to connect official growth figures with their real-world experience.
Within services, telecommunications continues to shine. Mobile data and internet access now reach remote villages, linking communities to the broader economy. Financial services have also expanded, with fintech platforms simplifying banking and payments for millions.
Real estate posted steady growth, though largely benefiting middle- and upper-income groups who can afford new properties. For many Nigerians, rent remains one of their biggest monthly expenses, especially in overcrowded urban areas.
Banks reported stronger performance this quarter, contributing to services growth. However, many small businesses still find it difficult to access loans, reinforcing the structural issues Professor Uwaleke underscored.
Overall, the data paints a picture of progress mixed with persistent constraints. nigeria">Nigeria’s economy is diversifying and growing more resilient, with less dependence on oil—a positive shift shaped by years of policy adjustments and market evolution.
Yet growth alone is not enough. The economy must expand faster to accommodate millions of young job seekers each year. Manufacturing needs stronger support. Infrastructure requires massive investment. Electricity supply remains a crucial obstacle to productivity.
agriculture">Agriculture’s performance offers hope. With vast arable land, a youthful population, and growing demand, the sector has the potential to power broader economic transformation if backed by better seeds, mechanisation, fertilisers, and rural infrastructure.
As nigeria">Nigeria enters the final quarter of 2025, the outlook is cautiously optimistic. The fundamentals are improving, but the real test is whether this GDP growth will translate into better living conditions.
That’s what matters most to Nigerians who wake up each day hoping that tomorrow will be just a little easier than today.
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