Nigeria’s Economy Records 3.13% Growth in Q1 2025 Following GDP Rebasing.
The National Bureau of Statistics (NBS) has reported that Nigeria’s Gross Domestic Product (GDP) grew by 3.13% year-on-year in the first quarter of 2025, marking a modest but notable improvement in the nation’s economic performance. This growth comes in the wake of a recent rebasing of the country’s GDP to reflect 2019 as the new base year, a move that provides a more current and accurate picture of economic activity across sectors.
Key Sector Highlights
One of the most significant drivers of this growth was the services sector, which maintained its position as the dominant force in the Nigerian economy. In Q1 2025, services contributed over 57% of total GDP, underscoring the sector’s expanding role in economic development. Major contributors within this category include information and communication technology (ICT), banking and financial services, and wholesale and retail trade, which continue to thrive amid digital transformation and growing consumer demand.
Oil Sector Sees Mild Recovery
After experiencing prolonged challenges in previous quarters, the oil and gas sector finally made a positive contribution to the economy. This was largely attributed to improved security measures around critical oil infrastructure, including pipelines, which reduced disruptions in crude oil production. While the increase in output was relatively modest, it marks a positive turnaround for a sector that had weighed heavily on overall GDP figures in recent times.
Revised GDP Estimates
Following the rebasing exercise, Nigeria’s economy is now valued at approximately ₦372.82 trillion (about $244 billion). This revised figure reflects both the structural changes in the economy and the inclusion of more recent data, providing a more comprehensive view of national output and productivity.
Implications for the Public and Investors
Despite the headline growth numbers, many Nigerians continue to grapple with economic hardship. When adjusted for inflation, real growth remains relatively weak, and the benefits of economic expansion are not yet being widely felt at the household level. Issues such as high inflation, declining purchasing power, currency volatility, and rising living costs persist, leaving many citizens financially strained.
However, the rebased GDP and improved transparency in national data reporting have strengthened investor confidence and improved Nigeria’s standing with international development agencies and financial institutions. Policymakers now have access to more relevant and timely information, which could support more targeted economic reforms and interventions in the future.
Bottom Line
While the economic data presents a cautiously optimistic outlook, especially for investors and analysts, the lived realities of the average Nigerian remain challenging. Bridging the gap between statistical growth and real-world impact will require not just better data, but sustained policy efforts aimed at stabilizing prices, boosting productivity, and ensuring inclusive growth.
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