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Despite inflation concerns, Nigeria’s GDP grows 4.07% in Q4 2025

by Enitan Boluwatife
February 28, 2026
in Headlines
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Despite persistent inflationary pressures and rising cost-of-living concerns, Nigeria’s GDP expanded by 4.07 per cent year-on-year in the fourth quarter of 2025, reflecting continued resilience across key productive sectors.

ENigeria Newspaper gathered this from data released by the National Bureau of Statistics on Friday showed that the Q4 growth outperformed the 3.76 per cent recorded in the corresponding period of 2024, signaling sustained recovery momentum toward the end of the year.

The expansion was largely supported by stronger performance in the services sector, improved oil output and a rebound in agriculture.

Agriculture recorded notable improvement during the quarter, growing by 4.00 per cent compared to 2.54 per cent in Q4 2024. The increase was driven mainly by higher crop production and improved activities across other agricultural segments.

The industry sector also strengthened, posting a 3.88 per cent growth rate, up from 2.49 per cent in the same period last year. Meanwhile, the services sector remained the largest contributor to economic output, expanding by 4.15 per cent and accounting for 55.92 per cent of total GDP during the quarter.

Although the services growth rate moderated slightly compared to 4.75 per cent recorded in Q4 2024, it continued to anchor overall economic performance.

In nominal terms, the size of the economy expanded significantly. Aggregate GDP stood at ₦122.81 trillion in Q4 2025, representing a 17.55 per cent increase from ₦104.47 trillion recorded in the same quarter of 2024.

The oil sector recorded a year-on-year real growth of 6.79 per cent, a marked improvement from the 2.08 per cent growth posted in Q4 2024. Average crude oil production rose to 1.58 million barrels per day during the quarter, compared to 1.54 million barrels per day a year earlier, though output declined from 1.64 million barrels per day recorded in Q3 2025.

On a quarter-on-quarter basis, the oil sector contracted by 6.30 per cent, reflecting production fluctuations within the period.

Despite oil’s improved performance, the non-oil sector remained the backbone of the economy, growing by 3.99 per cent in Q4 2025 and contributing 97.13 per cent to total GDP. Key drivers included agriculture, information and communication services, trade, real estate, financial services, manufacturing, construction and transportation.

For the full year, ENigeria Newspaper learnt, Nigeria’s economy grew by 3.87 per cent in 2025, higher than the 3.38 per cent recorded in 2024. The oil sector recorded annual growth of 8.50 per cent, while the non-oil sector accounted for 96.47 per cent of overall GDP.

The latest figures underscore steady economic expansion, even as inflationary pressures continue to weigh on household purchasing power.

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