Lagos, Nigeria: Nigeria’s economy is showing signs of a strong rebound, expanding by 4.23% in Q2 2025, up from 3.13% in Q1 and surpassing the 3.48% growth recorded in Q2 2024.
However, the Centre for the Promotion of Private Enterprise (CPPE) argues that the numbers must translate into real prosperity for Nigerians.
In a statement issued Saturday, CPPE CEO Dr Muda Yusuf described the latest GDP figures as evidence that the economy is “not only on a recovery trajectory but also gaining traction,” despite persistent structural and macroeconomic challenges.
The oil and gas sector led the charge, surging by 20.46%—a dramatic leap from 1.87% in Q1. Yusuf attributed the surge to policy reforms, governance overhaul at NNPC, and favourable market conditions. Yet, he cautioned that oil still contributes just 4.05% of GDP, underscoring the need to boost non-oil sectors.
Agriculture posted a modest 2.82% growth, up from a near-stagnant 0.07% in Q1, thanks to input support programs and favourable rainfall. Meanwhile, Yusuf warned that poor rural infrastructure, low mechanisation, and insecurity continue to hamper the sector’s full potential.
In the industrial sector, manufacturing slowed to 1.60%, dragged down by high production costs and FX volatility. Still, bright spots emerged: oil refining jumped to 15.78%, and construction held steady at 5.25%, reflecting ongoing infrastructure activity.
The services sector, which contributes a massive 56.53% to GDP, remained the backbone of the economy. ICT drove digital transformation, with financial services growing by 16.18%, and aviation rebounding with 6.34% growth after a contraction in Q1.
Yusuf emphasised that headline growth must be backed by reforms that unlock productivity in sectors that directly impact Nigerians. He outlined five urgent interventions: reducing energy and logistics costs to boost competitiveness, accelerating infrastructure investment in agriculture and industry, and expanding access to affordable credit for MSMEs and farmers.
He advocates for the promotion of local content and import substitution, as well as the strengthening of policy consistency and governance to build investor confidence.
He also highlighted “green shoots” in livestock production, which grew by 1.64% after a 16.69% contraction, and coal mining, which rebounded by 57.53%.
“The second quarter marks a shift from stabilisation to recovery,” Yusuf said. “But to turn this momentum into jobs, poverty reduction, and shared prosperity, the government must unlock productivity across key sectors.”
