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Nigeria Records 4.07 Percent Economic Expansion Driven by Agriculture Industry and Services in Fourth Quarter 2025

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By Pelumi Emmanuel

Nigeria’s Economy Surges in Q4 2025 With 4.07% Growth.

Abuja, Nigeria – Nigeria’s economy posted a notable 4.07% growth in the fourth quarter of 2025, according to newly released data from the National Bureau of Statistics.

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

This latest figure follows a 4.23% expansion in Q2 2025 and represents a substantial improvement over the 3.76% growth recorded in Q3 2024, signaling a sustained acceleration of economic activity under the reform policies of President Bola Ahmed Tinubu.

Sectoral Performance Highlights

Growth in Q4 2025 was broad-based, with all three major sectors of the economy showing strong performance:

  • Agriculture: Expanded by 4.0%, up from 2.54% in the same quarter of 2024. Gains were supported by improved security in key farming areas, better access to inputs, and targeted productivity interventions.
  • Industry: Increased by 3.88% versus 2.49% in Q4 2024, driven by energy sector reforms, improved foreign exchange liquidity, and a boost in investor confidence.
  • Services: Grew by 4.15%, fueled by resilient performance in finance, telecommunications, trade, and technology-driven services.

Overall, around 30 subsectors achieved growth above 3%, highlighting that economic expansion is becoming more diversified and less concentrated in isolated areas.

Annual Growth and Economic Size

For the full year 2025, Nigeria’s real GDP expanded by 3.87%, up from 3.38% in 2024. This growth pushed the total size of the economy to ₦441.5 trillion, up from ₦372.8 trillion the previous year.

Minister Edun attributed this expansion to disciplined expenditure management, fiscal coordination, and reforms aimed at restoring macroeconomic stability and credibility.

Impact and Consequences

  • Investor Confidence: Strong quarterly growth signals to both local and international investors that Nigeria’s economy is stabilizing and ripe for investment.
  • Job Creation: Broad-based sectoral expansion may lead to increased employment opportunities across agriculture, industry, and services.
  • Economic Resilience: Diversification across 30+ growing subsectors reduces the risk of over-reliance on specific industries.
  • Fiscal Health: Improved revenue mobilization and public finance transparency reinforce government credibility and ability to fund infrastructure and social programs.

What’s Next?

The Ministry of Finance intends to maintain disciplined implementation of reforms while continuing strategic coordination across government agencies. Focus will remain on:

  • Sustaining macroeconomic stability through fiscal and monetary policies
  • Enhancing transparency and accountability in public finance
  • Strengthening Nigeria’s position as a competitive destination for foreign direct investment
  • Monitoring sectoral growth to support targeted interventions where needed

Summary

Nigeria’s economy ended 2025 on a strong note, with Q4 GDP growth hitting 4.07%, led by robust performance in agriculture, industry, and services.

Annual GDP rose 3.87%, increasing the size of the economy to ₦441.5 trillion.

The government attributes these gains to structural reforms, fiscal discipline, and enhanced investor confidence, signaling a more resilient and diversified economic landscape.

Bulleted Takeaways

  • Nigeria’s Q4 2025 GDP grew by 4.07%, surpassing 4% for the second time in a decade.
  • Agriculture, industry, and services all recorded strong growth, with 30 subsectors growing above 3%.
  • Full-year GDP for 2025 expanded by 3.87%, up from 3.38% in 2024.
  • The economy’s size increased to ₦441.5 trillion from ₦372.8 trillion.
  • Minister Wale Edun emphasized that reforms and fiscal discipline are driving investor confidence.
  • Nigeria’s economy is becoming more diversified, reducing over-reliance on specific sectors.
  • Ongoing reforms aim to maintain macroeconomic stability, strengthen revenue mobilization, and attract long-term investment.
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About Pelumi Emmanuel

Pelumi Emmanuel is an accomplished writer and journalist with over 15 years of experience in the industry. He is a passionate and dedicated professional who is committed to producing high-quality content that informs, engages, and entertains readers. Pelumi’s love for reading and writing is evident in his work, which has been read worldwide and has garnered him a loyal following. His journalistic expertise is matched only by his natural talent for storytelling, making his articles both informative and engaging. He lives in California, USA.