Nigeria’s economy grew by 3.98 per cent in the third quarter of 2025, showing a slight improvement from the 3.86 per cent recorded in the same period of 2024, according to the latest Gross Domestic Product report published by the National Bureau of Statistics. The new figures indicate that the economy is maintaining moderate growth, but business leaders say the improvement has not yet translated into real relief for small businesses and households.
According to the NBS, the economy remained on a positive path despite pressure from weak manufacturing activities, high operating costs, and slow consumer demand. The report stated that GDP in real terms stood at N57.03tn in the third quarter of 2025, compared with N54.85tn recorded in the same quarter of 2024. In nominal terms, the economy grew by 18.12 per cent year-on-year to reach N113.59tn, higher than the N96.16tn posted in the corresponding period of the previous year. The services sector remained the largest contributor with 53.02 per cent, followed by agriculture with 31.21 per cent.
The oil sector recorded a real GDP growth rate of 5.84 per cent, slightly higher than the 5.66 per cent achieved in the same period of 2024. Average crude oil production rose to 1.64 million barrels per day, up from 1.47 million barrels per day recorded in Q3 2024, though lower than the 1.68 million barrels per day achieved in Q2 2025. On a quarter-on-quarter basis, the oil sector contracted by 5.53 per cent, but its contribution to real GDP increased to 3.44 per cent from 3.38 per cent in the previous year. The non-oil sector also expanded by 3.91 per cent, performing better than the 3.79 per cent recorded in Q3 2024 and the 3.64 per cent registered in Q2 2025.
Agriculture saw improved activities, growing by 3.79 per cent compared with 2.55 per cent in the previous year. Crop production remained the main driver of the sector, contributing nearly two-thirds of its nominal value. Manufacturing, however, slowed to 1.25 per cent in real terms, down from the 1.74 per cent posted in Q2 2025. The sector contributed 7.62 per cent to real GDP, slightly lower than the 7.82 per cent recorded in Q3 2024. Nominal growth in manufacturing also dropped sharply to 3.45 per cent, well below the 13.83 per cent posted a year earlier.
Construction recorded real growth of 5.57 per cent, though lower than the 6.80 per cent posted in Q3 2024. The sector contributed 3.80 per cent to the economy. Trade grew by 1.98 per cent, improving from 1.69 per cent in the same period last year and contributing 16.42 per cent to GDP. The information and communication sector continued to perform strongly, driven by telecommunications and information services. The sector recorded 5.78 per cent real growth and contributed 9.10 per cent to real GDP, up from 8.95 per cent in the previous year.
Real estate recorded one of the strongest nominal performances, rising by 89.34 per cent year-on-year, though real growth stood at 3.50 per cent. The sector contributed 13.36 per cent to real GDP. Financial and insurance services grew sharply by 19.63 per cent in real terms, supported mainly by financial institutions. Their contribution to GDP stood at 2.65 per cent, with nominal growth at 40.55 per cent. Human health and social services grew by 2.89 per cent, while education contributed 2.51 per cent, slightly above last year’s level. Public administration recorded real growth of 2.12 per cent.
The Statistician-General of the Federation, Prince Adeyemi Adeniran, noted that the figures reflect continued improvements in data quality and sector coverage, adding that the recovered momentum is supported by stronger activities in key non-oil sectors.
However, members of the Organised Private Sector said the 3.98 per cent GDP growth is not yet visible in the operations of small businesses or in the living conditions of many Nigerians. President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said the data is impressive but “does not reflect the realities of the average Nigerian and enterprises, particularly small and medium businesses.” He urged the government to ensure that the growth translates into real benefits for households and MSMEs, explaining that stability in foreign exchange, prices, and the shift to backward integration helped some sectors, but more intervention is needed in the micro and small business space.
National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, described the growth as marginal but positive. He said non-oil activities, especially agriculture, improved due to government diversification efforts and stable monetary policies. He also said stronger foreign reserves, now around $42bn, and improved oil output supported the expansion. He expressed hope that growth would soon reflect in higher employment, improved incomes, and stronger demand.
Also speaking, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the figures show sustained recovery despite slight moderation from the 4.23 per cent recorded in Q2 2025. He said exchange rate stability and slowing inflation helped the improvement. Yusuf noted the strong performance in ICT, agriculture, and financial services, but warned that the manufacturing sector’s weak growth shows continued strain on producers. He added that the non-oil sector, which contributed 96.56 per cent of GDP, still faces productivity challenges and needs policy support.
Nigeria’s economy continues to expand moderately, but OPS leaders insist that real growth must reflect in the prosperity of businesses and families before Nigerians can truly feel the impact.
