Nigeria’s economy gains traction with 4.23% growth in Q2 – CCPE

By Omodele Adigun

Nigeria’s economy has strengthened its recovery momentum, expanding by 4.23% year-on-year in the second quarter of 2025, representing a notable acceleration from 3.13% in Q1 and a stronger performance compared to 3.48% in Q2 2024.

The growth is a testament to the country’s resilience and the impact of policy reforms, according to Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE).

The oil and gas sector was the undisputed driver of Q2 growth, recording a dramatic 20.46% expansion. This surge reflects policy reforms, governance overhaul, and favorable market conditions.

Dr. Yusuf attributed the sector’s performance to incentives for deep offshore exploration, gas commercialisation, and investor-friendly regulations, saying, “These reforms are yielding results”@.

Agriculture posted a 2.82% growth rate, reflecting the impact of government input support programs and better rainfall patterns. However, the sector still faces serious productivity constraints.

The services sector remained the backbone of Nigeria’s economy, contributing 56.53% of GDP. Performance was mixed across key subsectors, with financial services expanding 16.18%.

Some sectors remain under severe strain, including textile and apparel, which contracted 1.32%, and motor vehicle assembly, which reversed Q1 gains to contract 1.5%.

Despite these challenges, notable green shoots emerged. Livestock production grew 1.64%, recovering from a sharp 16.69% contraction in Q1, while coal mining posted a remarkable 57.53% growth.

Non-oil GDP grew 3.64%, confirming that non-oil activity remains the mainstay of the economy. Dr. Yusuf emphasized the need for urgent structural interventions to sustain and deepen the growth momentum.

These interventions include reducing energy and logistics costs, accelerating infrastructure investment, and expanding affordable credit access for MSMEs and farmers.

According to Dr. Yusuf, “Q2 2025 is a clear statement that Nigeria’s economy is moving beyond stabilization toward a stronger recovery.”

He, however, noted that translating this growth into jobs, poverty reduction, and shared prosperity requires unlocking productivity in key sectors.

Dr. Yusuf concluded that consistent reform execution, improved governance, and private sector collaboration are essential for transforming Nigeria’s growth momentum into a more resilient, inclusive, and job-rich economy.

“With the right policies and interventions, Nigeria can build on its current growth trajectory and achieve sustainable economic development,” Dr. Yusuf added.