Nigeria’s economy has recorded a 3.98 percent growth in the third quarter of 2025, according to data from the National Bureau of Statistics. The non-oil sector, driven by agriculture and services, has been the primary driver of this growth. The country’s nominal GDP rose to N113.59 trillion, while real GDP stood at N57.03 trillion during the same period.
The agriculture sector saw a 3.79 percent expansion, an improvement from the 2.55 percent recorded in the third quarter of 2024. The services sector remains the largest contributor to the economy, accounting for 53.02 percent of total output, followed by agriculture at 31.21 percent. Other notable performers in the quarter included information communications technology, financial services, real estate, and trade.
Despite the positive macroeconomic indicators, many Nigerians continue to struggle with high living costs. Economists point to a disconnect between macroeconomic gains and microeconomic realities, citing weak transmission mechanisms as a major obstacle. The cost of living remains elevated due to factors such as high transportation, energy, and storage costs, as well as persistent security challenges.
Experts, including Prof. Segun Ajibola and Gbolade Idakolo, have cautioned that while the improved GDP growth rate signals macroeconomic stability, it does not automatically translate to better living conditions for ordinary Nigerians. They emphasize the need for a combination of monetary, fiscal, and political efforts to strengthen the links between the nominal and real segments of the economy.
Other experts, such as Mazi Okechukwu Unegbu and Prof. Godwin Oyedokun, have also sounded a note of caution, stating that the GDP growth rate may not fully reflect current economic realities. They argue that while growth is evident on paper, Nigerians are still waiting to feel its impact in their daily economic lives. Prof. Oyedokun described the situation as a “mixed picture,” where the gains from agricultural growth have not translated into lower living costs or improved welfare for citizens.
The experts agree that targeted interventions are needed to address the structural challenges facing the economy, including improved security in farming communities, reduced logistics costs, and enhanced storage and processing facilities. Until these issues are addressed, GDP growth will remain encouraging on paper but distant from daily realities.