By: ThinkBusiness Africa
LAGOS – Nigeria’s economic recovery has reached a significant milestone, with the national economy now valued at N441.5 trillion. This follows a year of resilient performance where the real Gross Domestic Product (GDP) grew by 3.87% in 2025, according to the latest data from the National Bureau of Statistics (NBS).
The momentum was particularly evident in the final quarter of the year. In Q4 2025, the economy expanded by 4.07%, marking only the second time in a decade that quarterly growth has breached the 4% ceiling.
While the GDP figures show an economy in expansion, the real victory for many Nigerians in 2025 has been the cooling of price pressures. Following the high-inflation environment of 2024, the government’s aggressive monetary and fiscal coordination has begun to yield a “disinflationary” trend.
Nigeria’s headline inflation dropped significantly from the mid-30% range in 2024 to 22.8% by April 2025.
Core Inflation: (Excluding volatile food and energy) stabilized at approximately 23.4%, indicating that the “price shocks” of the previous year are beginning to wash out of the system.
Nigeria’s Position Among Africa’s Giants
In the race for regional dominance, Nigeria’s 2025 performance places it in a unique position compared to its traditional rivals. With a 3.87% growth rate paired with an average inflation rate between 22% and 24%, Nigeria is currently navigating a stabilization phase following major structural reforms.
By comparison, South Africa is maintaining a much higher level of price stability with inflation at just 3.2%, though it struggles with a stagnant growth rate of approximately 1.0%.
Egypt has shown a quicker recovery after its own currency devaluation, posting a 3.5% growth rate with inflation cooling to the 12%–14% range.
Meanwhile, Kenya remains a consistent “middle-weight” performer, balancing a robust 4.7% growth rate with a very stable inflation profile of 4.5%.
The Minister of Finance, Mr. Wale Edun, emphasized that this growth is no longer a “one-sector show.” The 2025 expansion was supported by:
- Agriculture (4.0%): Improved security in food belts led to a surge in productivity compared to the 2.54% growth in 2024.
- Industry (3.88%): A recovery in the oil sector and improved forex liquidity revitalized manufacturing.
- Services (4.15%): Remained the backbone of the economy, driven by telecommunications and the burgeoning “FinTech” landscape.
“Notably, approximately 30 subsectors recorded growth rates above 3.0%, underscoring the scope and structural depth of the expansion,” the Minister noted in a press statement.
The leap in the total size of the economy—from ₦372.8 trillion in 2024 to ₦441.5 trillion in 2025—is being framed by the Ministry of Finance as a “strong signal” to the international community. While East African “sprinters” like Ethiopia and Senegal are posting higher percentage growth (6% – 8%), Nigeria remains the massive “gravity center” for capital in West Africa.
The Ministry reiterated its commitment to maintaining this trajectory through transparent public finance management and ongoing structural reforms to ensure that “4% growth” becomes the new floor, not the ceiling.
Would you like me to draft an editorial piece analyzing what these 2025 figures mean for the average Nigerian’s purchasing power?
