Nigeria’s economy grew by 3.98 percent in the third quarter of 2025, according to data released by the National Bureau of Statistics (NBS) on Monday. The non-oil sector, particularly agriculture and services, has been credited for sustaining consecutive growth in Africa’s most populous nation.
The NBS reported that the country’s nominal GDP rose to N113.59 trillion, while real GDP reached N57.03 trillion in Q3 2025. Agriculture expanded by 3.79 percent, up from 2.55 percent in the same period last year. The services sector, however, remained the dominant driver of economic activity, contributing 53.02 percent of total output, followed by agriculture at 31.21 percent. Key performers included information and communications technology, financial services, real estate, and trade.
Despite the positive macroeconomic indicators, many economists caution that the benefits of growth have yet to trickle down to ordinary Nigerians.
Living Standards Remain Stretched
Prof. Segun Ajibola, former president of the Chartered Institute of Bankers, described the GDP growth as “encouraging” but stressed that improvements in macroeconomic figures do not automatically translate to better living conditions. He highlighted high transportation, energy, and storage costs, as well as security challenges, as key factors keeping the cost of living elevated.
“It will take a combination of monetary, fiscal, and political efforts to strengthen the links between the nominal and real segments of the economy for the benefits of growth to cascade down to the mass of the people,” Prof. Ajibola said.
Gbolade Idakolo, CEO of SD & D Capital Management, also acknowledged the impact of targeted government policies, particularly in agriculture, but warned that the majority of citizens continue to struggle with rising living costs. Initiatives such as the Lagos–Kebbi partnership for Lake Rice production and the lifting of some food import bans have reduced staple food prices in some markets, yet the current minimum wage of N70,000 remains insufficient for many households.
Caution Advised on Interpreting Growth Figures
Mazi Okechukwu Unegbu urged Nigerians to interpret the GDP growth rate cautiously. “The numbers indicate improvement, but they may not fully reflect current economic realities. While growth is evident on paper, Nigerians are still waiting to feel its effect in their daily lives,” he said.
Prof. Godwin Oyedokun described the 3.98 percent growth as a “mixed picture,” emphasizing that agricultural expansion has yet to ease the burden of high living costs. Structural inflation driven by energy, logistics, and import dependence continues to erode household purchasing power.
“Wages are not keeping pace with inflation, so even in a growing economy, households feel poorer,” he said. Oyedokun stressed the need for targeted interventions, including better security for farming communities, reduced logistics costs, improved storage and processing facilities, and policies supporting both large and small-scale producers.
While Nigeria’s Q3 GDP growth signals resilience and positive trends in agriculture and services, experts agree that meaningful impact on households will require sustained policy action, stable prices, and improved purchasing power.
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