Chidozie Nwali
Following the rebasing exercises of Nigeria’s Gross Domestic Product (GDP), data shows the economy experienced a significant upturn in the first quarter of 2025, with the GDP growing by a notable “3.13% (year-on-year) in real terms,” according to the latest report from the National Bureau of Statistics (NBS).
The report, released in July 2025, highlights the pivotal role of the Services sector in this expansion, marking an improvement from the 2.27% growth recorded in the corresponding period of 2024.
Overall, Nigeria’s aggregate GDP reached “N94,051,733.20 million in nominal terms,” N49.34 trillion Naira in real GDP for the first quarter of 2025, representing an 18.30% year-on-year nominal growth. This performance is higher when compared to the first quarter of 2024, “which recorded an aggregate GDP of N79,505,265.15 million.”
The Services sector emerged as the primary engine of growth, demonstrating a robust expansion of “4.33% and contributed 57.50% to the aggregate GDP” in Q1 2025.
Following the Services sector, the Industry sector also showed positive momentum, growing by “3.42%, from 2.35% recorded in the first quarter of 2024.” While positive, the Agriculture sector’s growth was more modest at “0.07%, from the growth of -1.79% recorded in the first quarter of 2024.”
This robust performance was largely propelled by the strength of the non-oil sector.
The non-oil sector, a significant contributor to the nation’s economy, expanded by “3.19% in real terms during the reference quarter (Q1 2025)” and contributed a commanding “96.03% to the nation’s GDP.” According to NBS.
However, the report stated that; the growth was predominantly fueled by key industries within the
Services sector, including “Information and Communication (Telecommunications); Real Estate; Financial and Insurance (Financial Institutions); and Trade.”
Other significant drivers included Agriculture (Crop production), Construction, and Manufacturing (Food, Beverage and Tobacco).
In contrast, the oil sector, despite an increase in average daily oil production to “1.62 million barrels per day (mbpd)” in Q1 2025 (up from 1.57 mbpd in Q1 2024), recorded a real growth of “1.87% (year-on-year),” which represents a decrease of 2.85% points compared to the 4.71% recorded in Q1 2024.
The oil sector’s overall contribution to the total real GDP in Q1 2025 was “3.97%,” further emphasizing the non-oil sector’s dominant role. The NBS report highlights the continued diversification of Nigeria’s economy, with the Services sector taking the lead in driving sustainable growth and contributing significantly to Nigeria’s economic resilience.
