Nigeria’s economy expanded by 3.7% in the first half of 2025, signaling a modest but steady recovery amid ongoing reforms and improved performance across key sectors, according to preliminary data released by the National Bureau of Statistics (NBS).
The growth, measured year-on-year, reflects increased activity in the services, agriculture, and oil sectors, and marks a slight improvement over the 3.2% recorded in the same period last year.
Economists say the positive trajectory is being driven by improved oil production levels, the easing of foreign exchange constraints, and increased investor confidence following recent policy adjustments by the Tinubu administration.
“The 3.7% growth figure shows that some of the fiscal and monetary reforms are beginning to yield results,” said Dr. Zainab Olawale, a senior economist at the Lagos-based Centre for Economic Research. “However, inflation and cost-of-living pressures remain serious drags on household welfare.”
The oil sector, long the backbone of Nigeria’s economy, saw modest gains following renewed upstream investments and efforts to curb pipeline vandalism. Meanwhile, non-oil sectors such as ICT, banking, and agriculture contributed significantly to the overall growth, highlighting ongoing diversification efforts.
The NBS report also noted improvements in capital importation and public sector revenue, though warned that high inflation—currently hovering around 23%—continues to erode purchasing power and slow consumer spending.
Finance Minister Wale Edun welcomed the figures, calling them “a positive sign that Nigeria is moving in the right direction.” He reiterated the government’s commitment to sustaining macroeconomic stability, tackling inflation, and promoting inclusive growth.
Despite the encouraging numbers, analysts caution that structural challenges—such as power supply deficits, insecurity in rural areas, and currency volatility—could hamper sustained growth if not addressed in the second half of the year.
The International Monetary Fund (IMF) had earlier projected Nigeria’s GDP growth for 2025 at 3.5%, suggesting that the current pace slightly outperforms expectations.
