NIGERIA’s Gross Domestic Product (GDP) grew at its fastest pace in four years by 4.23 per cent in the second quarter of 2025, driven by a rise in crude oil production, according to a report by the National Bureau of Statistics (NBS).
The NBS stated on Monday, September 22, that the growth was at the highest level since 2020, as the average daily production of crude oil rose to 1.68 million barrels per day.
This means that Nigeria was able to meet its quota set by the Organisation of Petroleum Exporting Countries (OPEC) for the quarter.
The GDP expanded annually by 4.2 per cent in the three months through June, compared with 3.1 per cent in the previous quarter, the national statistics office said.
The report stated that the economy grew by the figure following the rebasing of the Gross Domestic Product using 2019 as the base year, as previous quarterly GDP estimates were benchmarked to the rebased annual estimates to align the old series with the new rebased estimates.
It said the procedure provided a new quarterly GDP series, which is compared to the 2025 second quarter estimates.
“Gross Domestic Product (GDP) grew by 4.23% (year-on-year) in real terms in the second quarter of 2025.
“During the quarter under review, agriculture grew by 2.82 per cent, an improvement from the 2.60 per cent recorded in the corresponding quarter of 2024. The growth of the industry sector stood at 7.45 per cent from 3.72 per cent recorded in the second quarter of 2024, while the services sector recorded a growth of 3.94 per cent from 3.83 per cent in the same quarter of 2024.
“In terms of share of the GDP, the Industry sector contributed more to the aggregate GDP in the second quarter of 2025 at 17.31 per cent compared to the corresponding quarter of 2024 at 16.79 per cent,” it added.
It disclosed further that aggregate GDP at basic price stood at N100.730 trillion in nominal terms, stressing that the performance was higher when compared to the second quarter of 2024, which recorded an aggregate GDP of N84.84 trillion, indicating a year-on-year nominal growth of 19.23 per cent.
“The nation in the second quarter of 2025 recorded an average daily oil production of 1.68 million barrels per day (mbpd), higher than the daily average production of 1.41 mbpd recorded in the same quarter of 2024 by 0.27 mbpd and higher than the first quarter of 2025 production volume of 1.62 mbpd by 0.06 mbpd,” the report noted.
It said the non-oil sector grew by 3.64 per cent in real terms during the reference quarter (Q2 2025).
Economic analysts say the anti-vandalism efforts of the Federal Government are paying off, as well as the enforcement of regulations in the oil sector, which has led to oil majors divesting from onshore and shallow-water fields.
“There are lots of divestments in the oil and gas sector currently ongoing as a result of reforms in the sector. Once sustained, the sector will keep impacting gross domestic product growth and the overall economy,” a development economist, Kingsley Obiakor, told The ICIR.
Economic activity may get a further boost from the sector in the coming quarters as daily oil output is expected to rise to more than two million barrels per day this year and be sustained through 2027, Bayo Ojulari, chief executive officer of Nigerian National Petroleum Company Limited(NNPCL), said in May.
He expressed optimism that daily production would reach three million barrels per day by 2030. The non-oil sector expanded by 3.6 per cent, compared with 3.2 per cent in the first quarter, led by the agriculture, information and communication, and real estate industries.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.