Nigeria’s economy strengthened further in Q2 2025, with Real GDP expanding by 4.23% year on year, according to the National Bureau of Statistics (NBS). This marks the fastest quarterly growth in recent years, outpacing 3.48% in Q2 2024 and 3.13% in Q1 2025. The stronger momentum reflects a broad-based recovery, with the Oil sector emerging as the most striking performer.

Oil Sector

The Oil sector posted an exceptional 20.46% year on year expansion in Q2 2025, a sharp jump from 1.87% in Q1 2025 and nearly double the 10.08% recorded in Q2 2024. The contribution to GDP rose to 4.05%, up from 3.51% in Q2 2024. This surge was powered by higher crude output as average daily production climbed to 1.68 million barrels per day from 1.62 mbpd in Q1 and 1.41 mbpd in Q2 2024 which was on the back of improved security in oil producing regions and sustained efforts to curb theft and pipeline vandalism.

Non-Oil Sector

Non-Oil sector remained the anchor of overall activity, expanding by 3.64% year on year. This represents an improvement from both Q1 2025 at 3.19% and Q2 2024 at 3.26%. Contributing 95.95% of total GDP, the Non- Oil sector reflects the benefit of a relatively more stable macroeconomic backdrop, with moderating inflation and improving investor sentiment supporting economic activities.

Outlook

Looking ahead, sustained progress in curbing crude oil theft and vandalism is expected to further lift production levels, positioning the oil sector as a consistent growth engine through the second half of the year. Average daily output has already shown signs of resilience, and with improved security and operational efficiency, the sector should continue to anchor overall growth momentum.

On the non-oil side, the arrival of the harvest season will boost agricultural output, support rural productivity and helping to stabilise food supply. Industry is likely to maintain its upswing, driven by manufacturing and construction, while services will continue to thrive on strong contributions from financial services, trade, and ICT. These gains will be supported by improving macroeconomic conditions, particularly the ongoing trend of disinflation and relative exchange rate stability, which should reinforce business confidence and encourage new investment flows.

Please follow the link “Q2 2025 GDP Report – GDP Growth Accelerates as Oil Sector Surges” to view the whole report.