Nigeria’s economic momentum eased in the third quarter of 2025, with growth slowing to 3.98% year-on-year, according to data released on Monday. The moderation follows a stronger 4.23% expansion recorded in the second quarter, as rising inflation and tighter monetary conditions continued to dampen business activity and household spending. Despite the slowdown, services, agriculture and improved oil production remained key drivers of overall growth between July and September.

Revised national accounts following a recent GDP rebasing exercise showed the economy expanded by 3.13% in the first quarter of 2025. In the latest data, the oil sector recorded a 5.84% year-on-year increase, supported by higher crude output averaging 1.64 million barrels per day—up from 1.47 million bpd in Q3 2024. However, the sector’s share of GDP slipped to 3.44%, underscoring Nigeria’s increasing dependence on non-oil sectors. The non-oil economy grew by 3.91%, buoyed by strong services growth of 4.15%, steady industrial gains and 3.77% expansion in agriculture, the National Bureau of Statistics reported.

The World Bank, in an October assessment, acknowledged progress made through recent policy reforms but stressed the need for deeper action to improve living standards and reduce persistent food inflation. The Bank forecasts GDP growth of 4.2% in 2025, rising to 4.4% by 2027, driven largely by services, agriculture and non-oil industries. With inflation at 16.05% in October and the central bank’s benchmark interest rate at 27%, can Nigeria strike the balance needed to sustain recovery while easing economic pressure on households? Visit www.jocomms.com for more news