Nigeria’s economy showed resilience in the third quarter of 2025, achieving a real Gross Domestic Product (GDP) growth of 3.98% year-on-year, slightly higher than the 3.86% recorded in the same quarter of 2024.
The National Bureau of Statistics (NBS) released data on Tuesday indicating broad economic expansion, primarily driven by agricultural production, revitalized industrial activity, and consistent growth in various service sectors.
The Q3 figures reflect a more robust economic landscape compared to the previous year, with significant improvements in agriculture and industry.
Agriculture, a crucial component of Nigeria’s non-oil economy, experienced a real growth of 3.79%, up from 2.55% in the same quarter of 2024.
This growth was largely attributed to enhanced crop yields and better seasonal output, aided by easing inflation and improved access to agricultural inputs in certain areas.
Industrial growth also picked up, rising to 3.77% from 2.78% a year earlier, indicating a gradual recovery in sectors such as manufacturing, construction, and utilities, which have been adapting to fluctuations in exchange rates and rising energy costs.
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While the services sector saw a slight slowdown from 4.97% in Q3 2024 to 4.15%, it remained the largest contributor to the economy, accounting for 53.02% of GDP in Q3 2025, slightly up from 52.93% in the same quarter last year.
In nominal terms, the economy experienced significant growth, with total nominal GDP rising to N113.59 trillion from N96.16 trillion in Q3 2024, marking an 18.12% year-on-year increase.
Analysts suggest that this nominal growth reflects both real sector advancements and the effects of inflation on overall price levels.
The oil sector had mixed results during this period. Nigeria’s average crude oil production increased to 1.64 million barrels per day (mbpd), up from 1.47 mbpd in Q3 2024, although it was slightly lower than the 1.68 mbpd recorded in Q2 2025.
Real growth in the oil sector reached 5.84%, surpassing the 5.66% growth seen in the same quarter of 2024, but significantly down from the robust 20.46% growth in the previous quarter.
This notable decline of 14.62 percentage points was attributed to a quarter-on-quarter contraction of 5.53%, influenced by temporary operational disruptions, ongoing pipeline repairs, and fluctuations in global oil prices.
Despite these challenges, the sector’s contribution to real GDP increased modestly to 3.44%, compared to 3.38% in Q3 2024, although it decreased from 4.05% in Q2 2025.
The non-oil sector, which remains a vital driver of Nigeria’s economic growth, expanded by 3.91% in real terms, surpassing the 3.79% growth rate recorded in Q3 2024.
The economy grew by 3.64% in the second quarter of 2025, driven primarily by sectors such as agriculture, telecommunications, real estate, financial services, construction, manufacturing, and trade.
The non-oil economy represented 96.56% of the total real GDP, a slight decrease from last year’s 96.62%, but an increase from 95.95% in the previous quarter.
The mining and quarrying sector, which includes crude oil, coal, metal ores, and other minerals, experienced significant challenges, contracting sharply by 41.08% year-on-year in nominal terms.
Economists suggest that this decline highlights the structural issues facing Nigeria’s extractive industries, even as crude oil production saw some modest improvements.
Overall, the Q3 GDP report suggests a cautiously improving economy. Although the oil sector remained unstable, stronger agricultural performance and ongoing growth in industrial and service sectors contributed to overall economic expansion.
