Nigeria’s economy expands 4.23% in Q2, driven by oil and industry rebound
NBS data shows growth powered by oil and industry, while inflation and weak household demand temper optimism

Nigeria’s economy grew by 4.23 percent in the second quarter of 2025, according to new data from the National Bureau of Statistics. It is one of the strongest quarterly results in recent years, a clear step up from the 3.13 percent recorded in the first quarter and higher than the 3.48 percent posted in the same period last year.
The recovery was led by oil. The sector grew by more than 20 percent year-on-year, its best performance in recent memory, after crude output picked up and refineries improved their activity. Oil’s share of the economy remains small at just over 4 percent, but the rebound was strong enough to give the headline number a lift.
Industry also posted solid gains, expanding by 7.45 percent, almost double the growth seen in Q2 2024. Agriculture came in at 2.82 percent, slightly better than last year, while services, which account for the largest slice of GDP, managed 3.94 percent. Together, these sectors underline how much of Nigeria’s economy still turns on non-oil activity even when oil surges.
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Nearly 96 percent of output came from the non-oil side, with telecommunications, financial services, real estate and trade continuing to carry the weight. Construction and energy supply also chipped in, keeping momentum going in areas that touch the everyday lives of Nigerians.
But the upbeat figures drew a sharp response from the Nigeria Labour Congress (NLC). The union dismissed the report as “rosy statistics”, warning that GDP growth means little to workers battling food prices, rising transport fares, and higher electricity tariffs. In its view, the data risks painting a picture far removed from the day-to-day reality of Nigerian households, where wages have failed to keep up with inflation.
Again, the numbers tell only a part of the story. Inflation is running high, eroding household incomes, and the naira’s swings are squeezing businesses. Analysts warn that while growth looks good on paper, it feels different on the ground, where families are paying more for food, fuel and rent. The concern is that the rebound may not translate into relief for most Nigerians any time soon.
Still, the second-quarter performance is among the strongest since the pandemic downturn. It gives officials a chance to claim progress, yet the harder task lies in converting growth into something ordinary Nigerians can feel: jobs, cheaper goods, and less pressure on household budgets. Until then, the NLC’s warning will hang over the numbers, a reminder that growth on paper does not always translate into growth in people’s lives.
