Services Sector Dominates As Economy Expands By 4.07% In Q4

Nigeria’s services sector retained its position as the dominant driver of economic activity in the fourth quarter of 2025, as the economy expanded by 4.07 per cent year-on-year in real terms, according to new data released by the National Bureau of Statistics on Friday.

The services sector accounted for 55.92 per cent of aggregate real Gross Domestic Product (GDP) in Q4 2025, slightly higher than the 55.87 per cent recorded in the corresponding period of 2024.

The sector grew by 4.15 per cent in real terms during the quarter, although this was marginally lower than the 4.75 per cent growth recorded a year earlier.

Agriculture, the second-largest contributor to real GDP, grew by 4.00 per cent year-on-year in Q4 2025, up from 2.54 per cent in the corresponding period of 2024. However, its share of real GDP stood at 28.66 per cent, slightly lower than 28.68 per cent recorded a year earlier.

The overall GDP growth of 4.07 per cent marked an improvement from the 3.76 per cent recorded in Q4 2024, underscoring a gradual strengthening of economic momentum despite persistent structural challenges. On an annual basis, the economy grew by 3.87 per cent in 2025, up from 3.38 per cent in 2024.

In nominal terms, aggregate GDP at basic prices stood at N122.81 trillion in the fourth quarter of 2025, representing a 17.55 per cent year-on-year increase compared to N104.48 trillion recorded in Q4 2024. The strong nominal expansion reflects both real output growth and price dynamics within the economy.

Within the services sector, Information and Communication emerged as a key growth engine. The sector recorded a real growth rate of 7.55 per cent year-on-year in Q4 2025, higher than the seven per cent implied by the 0.55 percentage point increase over the prior year. Quarter-on-quarter, it expanded by 18.75 per cent in real terms, highlighting strong sequential momentum.

The Information and Communication sector contributed 9.64 per cent to total real GDP in the quarter, up from 9.32 per cent in Q4 2024 and 9.10 per cent in the preceding quarter. On a full-year basis, the sector contributed 10.07 per cent to real GDP in 2025, compared to 9.79 per cent in 2024, reinforcing its growing structural importance.

Nominally, the sector grew by 26.34 per cent year-on-year in Q4 2025, significantly higher than the 17.97 per cent recorded in the same quarter of 2024. It accounted for 9.19 per cent of nominal GDP during the quarter.

The broader non-oil sector, which includes services, agriculture and manufacturing, remained the backbone of the economy. It grew by 3.99 per cent in real terms in Q4 2025, higher than the 3.80 per cent recorded in Q4 2024 and the 3.91 per cent posted in Q3 2025. In real terms, the non-oil sector contributed 97.13 per cent to GDP in the quarter.

The oil sector also recorded improved performance. Average daily crude oil production rose to 1.58 million barrels per day, compared to 1.54 mbpd in Q4 2024.

Real growth in the oil sector stood at 6.79 per cent year-on-year, a sharp increase from 2.08 per cent in the same quarter of 2024. Nevertheless, on a quarter-on-quarter basis, the sector contracted by 6.30 per cent, reflecting volatility in output levels.

Despite the oil sector’s stronger growth, its contribution to total real GDP remained modest at 2.87 per cent in Q4 2025, compared to 2.80 per cent in Q4 2024.

Overall, the data highlight a continuing structural shift toward services-led growth, with telecommunications, finance, trade, real estate and transport sustaining expansion.

While oil output recovery provided additional support, Nigeria’s growth trajectory in late 2025 was clearly anchored by the resilience and diversification of its services-driven, non-oil economy.