Nigeria’s economy grew by 3.98% year-on-year in the third quarter of 2025, moderating from the 4.23% expansion recorded in the previous quarter, which had been the fastest since Q2 2021. The latest figures indicate stable but slightly cooling momentum in Africa’s largest economy.
Non-Oil Sector Sustains Overall Growth
The non-oil sector remained the backbone of Nigeria’s economic activity, expanding by 3.91% in Q3, up from 3.64% in Q2. Several key industries contributed to this resilience, including:
- Agriculture, driven mainly by crop production
- Information and communication technology (ICT)
- Real estate
- Financial and insurance services
- Trade
- Construction
- Manufacturing
The continued expansion of these sectors underscores Nigeria’s gradual progress toward diversifying away from oil dependency.
Oil Sector Growth Decelerates Sharply
In contrast, the oil sector posted a growth of 5.84%, a steep slowdown from the 20.46% jump seen in the previous quarter. The deceleration reflects persistent challenges in crude production, fluctuating global oil prices, and operational disruptions across oil-producing regions.
Outlook
While overall growth remains positive, the divergence between the oil and non-oil sectors highlights the fragile balance of Nigeria’s economy. Sustained improvements in agriculture, ICT, manufacturing, and financial services could continue to support long-term stability, but volatility in the energy sector remains a key risk factor.