Nigeria’s gross domestic product (GDP) has risen to 4.33% in the second quarter of 2025, up from 3.13% in the first quarter. This growth is attributed to the non-oil sectors, which account for 95.5% of the economy, compared to the oil sector’s 4.05%. According to data from the National Bureau of Statistics (NBS), the service sector contributed the most, with 56.53%, followed by agriculture at 26.17%, and industries at 17.31%.
The oil sector also recorded significant growth, rising to 4.05% from 3.97% in the first quarter. However, despite this growth, critical sectors such as agriculture, manufacturing, trade, and ICT have been relatively sluggish. The impact of high inflation and interest rates, which stood at 20.12% and 27.50% in August 2025, has been felt across the economy.
Experts have weighed in on the development, acknowledging the modest gains while emphasizing the need for the government to do more to make the growth felt by Nigerians and investors. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, noted that while the improvement in the oil sector is commendable, the government needs to focus on boosting productivity in the non-oil sector to create more revenue and jobs.
Gbolade Idakolo, CEO of SD & D Capital Management, lauded the GDP growth but highlighted the high prices of petroleum products and interest rates, which have not recorded significant reductions despite improved refining capacity in Nigeria. Prof. Godwin Oyedokun, a don at Lead City University, commended the government’s policies, which have contributed to the rise in Q2 2025, but noted that the quality of growth, structural weaknesses, unbalanced growth, debt, and fiscal pressures are major concerns.
The experts’ comments suggest that while the GDP growth is a positive development, it does not necessarily translate to improved living standards for Nigerians. The government needs to address inflation, stabilize the naira, and scale up infrastructure investments to consolidate the gains and make the growth more inclusive. As Nigeria’s economy continues to evolve, it remains to be seen how the government will balance the need for growth with the need to address the pressing concerns of its citizens.
