Abuja, July 2, 2025 — Nigeria’s economy grew at an estimated rate of 3.7% year-on-year during the first half of 2025, buoyed by increased crude oil production and resilient performance in the manufacturing and services sectors, according to a report from Stanbic IBTC Bank based on S&P Global PMI data .
Economists attribute the uptick to the combined effects of higher oil output and improving domestic business conditions. The Nigerian Upstream Petroleum Regulatory Commission reports that sustained oil production levels have provided a significant boost, while both manufacturing and service industries showed encouraging growth, offsetting weaker performance in agriculture .
This growth rate aligns with forecasts from major financial institutions. The World Bank projects a 3.6% expansion for the full year 2025 , while Stanbic IBTC noted that the mid-year figure matches broader expectations for a full-year GDP growth of around 3.5% .
Analysts caution, however, that the economy continues to face significant headwinds. Persistently high inflation and pressure on living standards—despite recent dips—pose risks to sustained recovery. Additionally, agriculture remains below its historical trend, underscoring the need for focused reform and investment to fully unlock Nigeria’s growth potential .
As the Federal Government works to diversify revenue and strengthen fiscal stability, the near-term outlook remains cautiously optimistic. Continued support for non-oil sectors, alongside improved oil sector performance, will be essential for achieving robust and inclusive economic expansion.
