By: ThinkBusiness Africa
LAGOS – Nigeria’s economy ended 2025 on a high note, recording a real Gross Domestic Product (GDP) growth of 4.07% in the fourth quarter (Q4), according to the latest data released by the National Bureau of Statistics (NBS) on Friday.
The performance marks a notable acceleration from the 3.76% growth recorded in the same period of 2024 and outpaces the 3.98% growth seen in Q3 2025. This “year-end rally” suggests that the Nigerian economy is successfully navigating a high-interest-rate environment through a significant recovery in its productive sectors.
For years, Nigeria’s growth has been lopsided, heavily reliant on the Services sector. However, the Q4 2025 data reveals a more balanced economic engine.
According to the NBS data, the Agricultural sector grew by 4.00%, a sharp jump from the 2.54% recorded in Q4 2024. Analysts attribute this to a bumper late-harvest season and government interventions in the “Green Revolution” initiatives.
The Industrial sector expanded by 3.88%, up from 2.49% a year prior. This was fueled by a recovery in manufacturing and steady, albeit modest, improvements in domestic crude oil production.
The Services sector, which includes Banking and Telecommunications, remains the largest contributor to the GDP. While it grew by 4.15%, it showed a slight cooling from the 4.75% growth seen in the previous year, likely due to tighter consumer spending and the impact of the Central Bank’s hawkish monetary policies.
The Oil sector contributed 4.0% an increase from 3.4% contribution in 2024, showing a stable growth in the country’s revenue power house.
Highlights from the report shows that the non-oil sector remains the bedrock of the economy, contributing over 96% to the total GDP.
While the 4.07% figure provides a reason for optimism at the policy level, analysts warn that the “lived reality” for many Nigerians remains challenging. Inflation, though easing slightly in early 2026 to around 15.1%, continues to strain household budgets.
The Nigerian economy demonstrated consistent strength throughout 2025, starting the year with a 3.13% growth rate in the first quarter, primarily driven by the expansion of the Services sector and Telecommunications. The second quarter, which saw the year’s highest growth at 4.23%, was fueled by a massive 20.5% rebound in the Oil sector.
As the year progressed into the third quarter, growth remained robust at 3.98%, supported by a resilient Non-Oil sector. The year concluded on a high note in the fourth quarter with a 4.07% growth rate, as the recovery of the Agriculture and Industry sectors provided a well-balanced finish.
When combined, these quarterly performances resulted in an overall annual real GDP growth of approximately 3.85% for 2025, marking a significant broad-based recovery for the nation.
