Nigeria’s GDP Hits 4.07% in Q4 2025, Signaling Strong Economic Recovery

Nigeria’s economy recorded a real GDP growth of 4.07% in the fourth quarter of 2025 (Q4 2025), according to data released by the National Bureau of Statistics.

The growth, welcomed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, marks only the second time in a decade excluding the post-pandemic rebound that quarterly growth has exceeded 4%.

The figure represents an improvement over the 3.76% growth recorded in Q3 2024 and follows a 4.23% increase in Q2 2025, reflecting strengthening macroeconomic stability and the impact of ongoing reforms under President Bola Ahmed Tinubu’s administration.

Growth in Q4 2025 was broad-based across the country’s three major sectors. Agriculture expanded by 4.0%, up from 2.54% in Q4 2024, boosted by improved security in key food-producing areas and greater access to agricultural inputs.

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Industry grew by 3.88%, compared to 2.49% in the same period in 2024, driven by enhanced foreign exchange liquidity, energy sector reforms, and rising investor confidence. Services, meanwhile, recorded 4.15% growth, propelled by expansion in finance, telecommunications, trade, and technology-driven activities.

Approximately 30 subsectors achieved growth above 3%, highlighting the increasing diversification of the economy. Experts say this broad-based expansion signals resilience and a gradual move away from dependence on oil revenues.

For the full year 2025, Nigeria’s real GDP rose by 3.87%, up from 3.38% in 2024, increasing the size of the economy to ₦441.5 trillion from ₦372.8 trillion. Analysts attribute the performance to improved fiscal coordination, disciplined expenditure management, stronger revenue mobilisation, and ongoing structural reforms aimed at restoring macroeconomic credibility.

Minister Wale Edun emphasized that the latest data reinforce confidence among both domestic and international investors, signaling that Nigeria’s reform programme is gaining traction. He added that the Ministry of Finance remains committed to sustaining reforms, coordinating institutions effectively, and engaging stakeholders transparently.

Economists note that the Q4 growth provides a positive outlook for investment, employment, and business activity, though challenges remain in areas such as infrastructure development, energy provision, and inflation management. If sustained, the momentum could position Nigeria for stronger long-term growth and enhanced economic diversification.

The Q4 2025 performance underscores a cautious but clear recovery path, showing that strategic reforms, coupled with macroeconomic stability, are beginning to yield tangible results across multiple sectors of the Nigerian economy.