GDP rises to 4.07% as analysts call for stronger non-oil economy

Economic analysts have advised Nigeria to strengthen efforts to diversify its economy beyond crude oil.

They said the country needs stronger reforms in agriculture and industry to maintain economic growth and reduce the risks that come with relying heavily on oil.

The experts from Abuja-based consulting firm Macrostrat made this statement on Friday while reacting to Nigeria’s latest economic growth figures released by the National Bureau of Statistics (NBS).

According to the analysts, Nigeria’s economy finished 2025 on a stronger note. However, they warned that long-term growth would only be sustainable if the country reduces its dependence on oil revenue and increases production in other sectors of the economy.

Data from the NBS showed that Nigeria’s real Gross Domestic Product (GDP) grew by 4.07 per cent year-on-year in the fourth quarter of 2025. This was higher than the 3.76 per cent growth recorded during the same period in 2024.

The economy also recorded a quarter-on-quarter growth of 3.36 per cent, indicating stronger economic activity toward the end of the year.

Macrostrat explained that the growth was mainly driven by an increase in crude oil production and continued strength in the services sector.

Crude oil production averaged about 1.58 million barrels per day during the period, helping the oil sector grow by 6.79 per cent.

The agriculture sector also improved, recording a growth of 4.00 per cent compared to 2.54 per cent in the previous year. Meanwhile, the services sector expanded by 4.15 per cent.

Despite the strong performance of the oil sector, the analysts said the non-oil sector remains very important for Nigeria’s economic stability.

Non-oil activities grew by 3.99 per cent, while the services sector remained the largest contributor to the economy, accounting for about 55.92 per cent of real GDP. Nigeria’s nominal GDP was estimated at ₦122.81 trillion in the fourth quarter of 2025, representing a 17.55 per cent increase compared to the same period in 2024.

For the entire year, Nigeria’s economy grew by 3.87 per cent in real terms, an improvement from the 3.38 per cent growth recorded in 2024. The size of the economy also increased significantly, reaching ₦441.5 trillion in 2025.

Macrostrat noted that the improved growth was supported by better oil production, policy reforms that boosted agriculture, and strong demand within the services sector.

However, the firm warned that depending too much on oil could expose Nigeria’s economy to global oil price fluctuations.

The analysts therefore advised the government to strengthen policies that improve productivity in agriculture and expand industrial activities in order to achieve stable and inclusive economic growth.

They added that sustaining economic growth above four per cent would require deeper economic diversification beyond crude oil.