Nigeria’s non-oil economy, which has for years been the country’s primary driver of growth, saw its dominance slightly reduced in the second quarter of 2025 following a strong rebound in oil production.
This was revealed in the latest Gross Domestic Product (GDP) report released on Monday by the National Bureau of Statistics (NBS). According to the data, the non-oil sector contributed 95.95 percent to real GDP in Q2 2025, a marginal decline compared to 96.49 percent in the corresponding period of 2024 and 96.03 percent recorded in the first quarter of 2025.
“In real terms, the non-oil sector contributed 95.95 percent to the nation’s GDP in the second quarter of 2025, lower than the share recorded in the second quarter of 2024, which was 96.49 percent, and lower than the first quarter of 2025 recorded as 96.03 percent,” the report stated.
The dip reflects a resurgence in crude oil output, which has been gradually recovering after years of production shortfalls caused by pipeline vandalism, oil theft, and underinvestment. Rising global oil prices and improved security around key production facilities contributed to the sector’s stronger performance.
Despite the marginal decline, the non-oil economy remains the bedrock of Nigeria’s growth, driven largely by sectors such as trade, agriculture, telecommunications, and financial services. Analysts note that while the oil sector has gained ground, structural challenges and market volatility mean the government will continue to rely on the resilience of non-oil activities to sustain economic stability.
The NBS report is expected to influence fiscal and monetary policy decisions in the coming months, particularly as Nigeria seeks to balance its dependence on oil revenues with ongoing efforts to diversify the economy.
