Nigeria’s economy grew by 3.13% year-on-year in the first quarter of 2025, according to newly rebased gross domestic product (GDP) figures released by the National Bureau of Statistics (NBS) on Monday. While the growth fell short of analysts’ 4.9% forecast, officials say the updated GDP framework provides a clearer picture of the country’s economic structure and recent momentum.
The rebasing, which shifts the base year for calculations to 2019, estimates Nigeria’s economy at ₦372.8 trillion ($243.7 billion). The Q1 2025 expansion marks an improvement from the 2.27% growth recorded in the same period last year, signaling gradual recovery.
Sectoral Performance
The services sector drove growth, expanding by 4.33% and contributing over 57% to total GDP. The industrial sector followed with 3.42% growth, while agriculture saw minimal growth at 0.07%, rebounding from a contraction in Q1 2024.
Rebasing for Accuracy
GDP rebasing, a periodic exercise to reflect structural changes in the economy, allows for more accurate measurements of economic activity. The NBS emphasized that the update better captures Nigeria’s evolving sectors, particularly telecommunications and financial services.
Despite the uptick, economists note that sluggish agricultural performance and external pressures—such as fluctuating oil prices and currency instability—remain hurdles to faster growth. The government has pledged to intensify diversification efforts to bolster key sectors.
As Nigeria navigates post-rebasing adjustments, analysts will watch whether policy measures can sustain momentum and close the gap between projections and actual performance in the coming quarters.
