Economy

Nigeria’s Economy Expands 4.07% in Q4 2025, Services Lead Growth

Published

8 months ago

February 27, 2026

Q Tinny

Nigeria Q4 2025 GDP growth hits 4.07%, led by services, with agriculture and industry also contributing to improved full-year 3.87% expansion

Nigeria’s economy grew by 4.07 per cent year-on-year in real terms in the fourth quarter of 2025, improving on the 3.76 per cent recorded in Q4 2024, according to the latest Gross Domestic Product report released on Friday by the National Bureau of Statistics.

Also read: Africa Green Economy Summit 2026 Seeks $3.09bn Funding

The report indicated that growth was driven by expansion across the three major sectors – agriculture, industry, and services – with services remaining the largest contributor to overall output.

Agriculture grew by 4.00 per cent, up from 2.54 per cent a year earlier, while industry expanded by 3.88 per cent, compared with 2.49 per cent in Q4 2024.

The services sector increased by 4.15 per cent, slightly lower than its 4.75 per cent growth in the corresponding quarter of 2024.

Sectoral contributions showed that services accounted for 55.92 per cent of aggregate GDP, marginally higher than their 55.87 per cent share in the previous year, underscoring the economy’s continued reliance on services.

On a full-year basis, Nigeria recorded 3.87 per cent growth in 2025, up from 3.38 per cent in 2024, surpassing the International Monetary Fund’s projection of 3.4 per cent growth made in July 2025.

Nominal GDP rose to N122.81 trillion in Q4 2025, from N104.48 trillion a year earlier, representing 17.55 per cent year-on-year nominal growth.

Leading contributors to real GDP included crop production (20.44 per cent), trade (16.84 per cent), real estate (14.57 per cent) and telecommunications and information services (8.12 per cent).

Within the oil sector, average daily crude production increased slightly to 1.58 million barrels per day from 1.54 million in Q4 2024, although it remained below the 1.64 million barrels per day recorded in the preceding quarter.

Analysts at Analysts Data Services and Report highlighted that sectors with the highest contribution to GDP in 2025 included agriculture (27.55 per cent), trade (17.37 per cent), real estate (13.57 per cent), ICT (10.07 per cent), and manufacturing (8.05 per cent).

The analysis noted mixed sectoral performance: manufacturing, real estate, administrative support, education, and health saw declines, while trade, public administration, and professional services experienced slower growth.

Quarter-on-quarter, GDP growth increased by 0.09 per cent from 3.98 per cent in Q3 2025 to 4.07 per cent in Q4 2025, largely driven by transport and storage, alongside financial and insurance sectors, which have recently emerged as significant drivers of growth.

Also read: Tinubu Unveils Blue Economy Framework to Drive Growth

Overall, the report underscores Nigeria’s broad-based sectoral growth, rising nominal output, and continued structural reliance on the services sector as the engine of economic expansion.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

13 hours ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.