Nigeria’s economy grew by 3.98 percent in the third quarter of 2025.
The most populous country in Africa had successive growth thanks to non-oil industries like agriculture and services, according to figures released by the National Bureau of Statistics on Monday.
Nigeria’s national GDP climbed to N113.59 trillion in nominal terms, while real GDP was recorded at N57.03 trillion in the third quarter of 2025.
NBS data stated that the agriculture sector rose by 3.79 percent, an improvement from the 2.55 percent registered in Q3 2024.
However, the services sector remained the country’s economic engine driver, providing 53.02 percent of overall output, followed by agriculture at 31.21 percent.
The Q3 GDP figures showed that trade, real estate, financial services, and information communications technology were some of the top achievers.
Macroeconomic achievements are praiseworthy, but microeconomic conditions have continued to deteriorate as economists identify a gap between macro and microeconomic levels.
According to economists and financial analysts, the weak transmission mechanism is why the cost of living has remained elevated for the majority of Nigerians.
In a separate interview on Monday, the Executive Officer of SD & D Capital Management, Gbolade Idakolo, a renowned economist and former president and chairman of the Council of the Chartered Institute of Bankers, Prof. Segun Ajibola, a former president of CIBN, Mazi Okechukwu Unegbu, and university don, Prof. Godwin Oyedokun revealed a major problem with Nigeria’s GDP growth rate.
Professor Ajibola: Despite the GDP growth rate, living standards have not decreased.
Prof. Ajibola hailed Nigeria’s sustained GDP growth as “encouraging,” especially with greater contributions from real-sector sectors such as agriculture.
He pointed out that during the harvest season, agricultural output usually increases, improving the sector’s overall performance. He claims that although food prices have decreased recently, the entire cost of life is still high due to high transportation, energy, and storage costs as well as ongoing security issues.
He, however, emphasized that while the increased GDP growth rate signifies a measure of macroeconomic stability, it does not inevitably translate to better living conditions for average Nigerians.
Nigeria’s “weak transmission mechanisms” between macroeconomic advances and household welfare continue to be a significant obstacle, he emphasized.
He states that “for the benefits of growth to cascade down to the mass of the people, it will take a combination of monetary, fiscal, and political efforts to strengthen the links between the nominal and real segments of the economy.”
CEO Idakolo is struggling with increasing living expenses in the face of GDP growth.
According to Idakolo, Nigeria’s most recent GDP statistics shows the effects of specific government initiatives in the agriculture sector, but it also cautions that many people are still struggling to keep up with growing living expenses.
He remarked that recent government initiatives are beginning to yield benefits. He emphasized governmental moves such as enhanced state-level collaboration—including the Lagos–Kebbi cooperation for Lake Rice production—the easing of the restriction on selected food imports, and expanded government support targeted at improving the economic environment for farmers.
He claims that these measures have helped lower the cost of some staple items in various marketplaces.
Despite this development, Idakolo noted that the economic reality for many Nigerians remain severe. He pointed out that the existing minimum salary of N70,000 is still insufficient for most households, given the prevailing cost of food items and other needs.
Despite recent improvements in the agricultural sector, he claimed that “most Nigerians still find it difficult to meet their basic feeding needs” due to the disparity between declining food prices and residents’ purchasing power.
Why Nigerians should be suspicious about Nigeria’s GDP growth rate in Q3 | Unegbu
Unegbu advised Nigerians to use caution while interpreting the most recent GDP data.
He claims that even though the data show progress, they might not accurately represent the state of the economy today.
The 3.98 percent GDP growth rate in the third quarter of 2025 is just a number. By the time you view the numbers, a lot of time has passed, thus it might not be an accurate representation. However, I believe Nigeria is making progress, even though we are unable to observe the effects in the market.
Unegbu remarked that while development is obvious on paper, Nigerians are still waiting to feel its effect in their everyday economic lives.
Without home aid, it is meaningless, according to Prof. Oyedokun
Oyedokun, for his part, called Nigeria’s GDP growth of 3.98% in the third quarter of 2025 a “mixed picture,” stating that the improvements are still far from the everyday experiences of the majority of Nigerians.
He emphasized that although the agriculture-driven expansion suggests an expanding economy, it has not translated into decreased living costs or greater welfare for citizens.
According to Oyedokun, despite ongoing structural difficulties, the agriculture sector’s outstanding performance is indicative of higher output, better production cycles, and farmer resilience.
He clarified, “This type of growth typically indicates improved food supply, stronger rural productivity, and increased contributions to national output.”
However, he emphasized that since a number of variables continue to lessen the impact of GDP expansion, Nigerians had good reason to wonder what the growth actually meant for their means of subsistence.
According to him, food inflation remains stubbornly high, as insecurity, logistics bottlenecks, rising energy costs and weak transport infrastructure continue to force up prices despite higher agricultural output.
He said that structural inflation is overshadowing economic advances, driven by exchange rate instability, fuel prices, import dependency and rising production expenditures – all of which erode household purchasing power.
Prof. Oyedokun went on to say that the increase is not yet inclusive because smallholder farmers, who comprise the majority of the agricultural labor, continue to struggle with insufficient mechanization, limited access to capital, and weak market ties.
“Even in a growing economy, households feel poorer because wages are not keeping up with inflation,” he added, noting that policy changes take time to show up in prices, transportation, and living standards.
He emphasized that Nigerians desire progress they can feel, such as stable prices, reasonably priced food, functional markets, and greater spending power, even as he acknowledged the encouraging signal from the most recent GDP data.
He argued for specific interventions, such as greater storage and processing facilities, lower transportation costs, increased security in farming communities, more stable foreign exchange, and policies that assist both large and small-scale producers.
“Until inflation is tamed and incomes begin to rise, GDP growth will remain encouraging on paper but distant from daily realities,” Oyedokun added.
