The nation’s real Gross Domestic Product (GDP) expanded by 4.07% in the fourth quarter of 2025, according to the latest figures from the National Bureau of Statistics (NBS).
This milestone, hailed by Finance Minister Wale Edun as a testament to broad-based growth and enhanced macroeconomic stability, marks the second instance in a decade—outside the anomalous post-pandemic rebound—where quarterly growth has surpassed the 4% threshold.
The data, released by the NBS on Friday, underscores a resilient economy navigating global headwinds, including fluctuating oil prices and inflationary pressures.
Minister Edun, who also serves as the Coordinating Minister of the Economy, stated on Saturday through his Assistant Director for Information and Public Relations, Mrs. Uloma Amadi, emphasizing the role of President Bola Tinubu‘s leadership in driving this progress. “This marks the second time in a decade—excluding the immediate post-pandemic rebound—that quarterly growth has exceeded 4%. It follows the 4.23% growth recorded in Q2 2025 and represents a clear improvement from 3.76% in Q3 2024,” Edun stated, highlighting the upward trajectory.
Breaking down the figures, the growth was propelled by contributions across Nigeria’s three primary economic sectors: agriculture, industry, and services. Agriculture, a cornerstone of the nation’s economy and a key employer for millions, saw a notable uptick to 4.0% growth in Q4 2025, compared to just 2.54% in the same period of 2024.
Edun attributed this surge to enhanced security measures in food-producing regions, which have reduced disruptions from insurgencies and banditry, alongside improved access to essential inputs like fertilizers and seeds. This sector’s revival is particularly significant for rural communities, where farming remains a lifeline amid ongoing efforts to boost food security.
The industrial sector, often hampered by infrastructure challenges and foreign exchange volatility, posted a 3.88% expansion, up from 2.49% a year earlier. Key drivers included better liquidity in the foreign exchange market, reforms in the energy sector—such as investments in power generation and distribution—and a resurgence in investor confidence.
Nigeria’s oil-dependent industry has benefited from stabilized crude production, with non-oil segments like manufacturing and mining showing promising gains.
Meanwhile, the services sector, which continues to dominate as the largest contributor to overall output, grew by 4.15%. This reflects booming activities in finance, telecommunications, trade, and technology-driven industries.
With Nigeria’s digital economy expanding rapidly—fueled by initiatives like the National Digital Economy Policy—the sector’s performance highlights the country’s shift toward diversification away from traditional oil reliance.
Edun pointed out the depth of this growth, noting that approximately 30 subsectors achieved expansion rates above 3%. This widespread progress signals not just recovery but a more diversified and resilient economic base, reducing vulnerability to external shocks.
For the full year of 2025, Nigeria’s real GDP growth averaged 3.87%, an improvement over 2024’s 3.38%. The economy’s nominal size swelled to ₦441.5 trillion, up from ₦372.8 trillion the previous year, reflecting higher output and better revenue streams.
Analysts view these numbers as validation of the Tinubu administration’s reform agenda, which has focused on fiscal discipline, revenue mobilization, and structural changes to restore investor trust. “This performance reflects improved fiscal coordination, disciplined expenditure management, stronger revenue mobilization, and continued structural reforms aimed at restoring macroeconomic credibility,” Edun explained.
He added that the data is bolstering confidence among both domestic and international investors, with foreign direct investment inflows reportedly on the rise in sectors like renewable energy and fintech.
The NBS report aligns with broader economic indicators, including a moderating inflation rate and strengthened naira stability following central bank interventions. However, challenges persist: unemployment remains high, particularly among youth, and supply chain issues in agriculture could temper future gains if not addressed. Economists caution that sustaining this momentum will require ongoing investments in infrastructure, education, and anti-corruption measures.
In his concluding remarks, Edun reaffirmed the government’s dedication to these efforts: “The Ministry of Finance remains committed to sustained reform implementation, institutional coordination, and transparent engagement with stakeholders.”
As Nigeria positions itself as Africa’s economic powerhouse, this GDP report offers a beacon of optimism, suggesting that the nation’s bold policy shifts are beginning to yield tangible results for its over 200 million citizens.
WHAT YOU SHOULD KNOW
GDP grew by 4.07% in Q4 2025—the second quarterly expansion above 4% in a decade outside the post-pandemic bounce—driven by strong, broad-based performance across agriculture (4.0%), industry (3.88%), and services (4.15%).
