Nigeria’s Gross Domestic Product (GDP) expanded by 4.23% year-on-year in the second quarter of 2025, marking its fastest economic growth in nearly four years, according to data released by the National Bureau of Statistics (NBS) on September 22, 2025. This growth reflects a stronger performance across key sectors and is partly attributed to the recent rebasing of the country’s GDP using 2019 as the base year, which better captures the current economic realities of Africa’s largest economy.

The new GDP figure represents a significant improvement from the 3.48% growth recorded in Q2 2024 and a notable acceleration from the 3.13% registered in the first quarter of 2025. It also breaks a recent trend of slower growth seen in Nigeria’s economy over the past few years, signaling a renewed momentum that could boost investor confidence and government revenue.

Sectoral performance contributed strongly to this positive outcome. The industry sector led the growth with a 7.45% increase—more than double the 3.72% growth seen in the same quarter last year. This surge was largely driven by the oil industry, which grew sharply by 20.46% in Q2 2025 compared to 10.08% the previous year, fueled by higher crude oil production that averaged 1.68 million barrels per day—up from 1.41 million barrels in Q2 2024. The oil sector’s rebound marks a critical boost to Nigeria’s export revenues and foreign exchange earnings.

Agriculture saw moderate growth of 2.82% compared to 2.60% in the corresponding quarter of 2024, while the services sector posted steady expansion at 3.94%. The non-oil sector overall grew by 3.64%, underscoring diversification efforts beyond oil, although oil remains a vital driver of the economy. Nominal GDP stood at N100.73 trillion, reflecting not only real economic expansion but also inflationary pressures within the economy.

Economists have welcomed the figures as a positive sign that Nigeria’s economy is on a more stable path. Bismarck Rewane, a leading Nigerian economist, told Reuters, “The rebasing of GDP has helped provide a clearer picture of the growth dynamics in the Nigerian economy. This 4.23% growth is a reflection of both reforms and sectoral recovery, especially in oil and industry.” Experts also noted that President Bola Tinubu’s economic policies aimed at subsidy reduction and fiscal consolidation are contributing to strengthening the country’s financial foundation.

For Nigerians, the improved GDP growth offers hope for job creation, improved public services, and better economic opportunities, although challenges such as inflation and infrastructural deficits remain. Businesses, especially in oil, manufacturing, and agriculture, may benefit from increased activity and government investment linked to this economic upturn.

Looking ahead, Nigeria’s government has set an ambitious annual growth target of 7%, aiming to maintain the upward trajectory through diversification and structural reforms. The narrative now centers on sustaining momentum, improving the business environment, and ensuring that growth translates into tangible improvements for all Nigerians.

In summary, Nigeria’s 4.23% GDP growth in Q2 2025 after rebasing signals a stronger economic performance driven by a rebound in oil production and broader sectoral gains. This milestone provides a foundation for optimistic economic policies and renewed investor confidence as the country navigates its path toward long-term development and stability.