Translate 4.23% GDP Growth Rate Into Job Creation, Experts Tell FG

…Seek More Action To Tackle Inflation, Other Structural Bottlenecks

…Trade, Crop Production, Real Estate Drive 4.23% GDP Growth

Nigeria’s economy expanded by 4.23 per cent year-on-year in the second quarter of 2025, according to data from the National Bureau of Statistics (NBS), raising optimism about recovery prospects.

However, analysts caution that underlying structural weaknesses, inflationary pressures, and foreign exchange instability could undermine the sustainability of the growth.

The GDP growth rate, which reflects the rebasing of the economy to 2019 as the new benchmark year, is an improvement over the 3.48 per cent recorded in the corresponding quarter of 2024.

Sectoral performance showed notable gains. The industry sector led with 7.45 per cent growth, up sharply from 3.72 per cent in Q2 2024, and accounted for 17.31 per cent of GDP, compared to 16.79 per cent a year earlier. Agriculture expanded by 2.82 per cent, while services grew by 3.94 per cent, demonstrating resilience despite economic headwinds.

Reacting to the data, Group Managing Director of Crane Securities Limited, Mr Mike Eze, described the growth as “a significant improvement, especially given the rebasing exercise that provides a more accurate picture of the economy.”

He noted that the strong performance of the industry sector was encouraging, as it suggested Nigeria may be gradually reducing its dependence on oil.

However, he warned that sustaining growth would require investments in infrastructure and reforms to address energy shortages, foreign exchange volatility, and insecurity.

An Economist Mrs Fumi Fagbemi highlighted the mixed implications of the figures, pointing out that while agriculture and services showed modest improvements, high inflation and rising production costs could quickly erode the benefits.

“Policymakers must ensure that the reported growth translates into job creation and improved living standards for households, otherwise it risks being growth without development,” she cautioned.

Similarly, Lagos-based research analyst, Mr. Chike Okoronta, said the rebased GDP provided a more reliable framework for policy planning but urged policymakers to act decisively.

“At N100.73tn in nominal terms, the economy is showing strong expansion, but we must not overlook structural weaknesses. The industry sector’s rising share of GDP to 17.31 per cent is a positive sign, yet Nigeria still grapples with insecurity, FX challenges, and limited access to credit for manufacturers.

“Without addressing these bottlenecks, sustaining growth above 4 per cent will remain difficult,” he said.

While the stronger growth trajectory reflects improved performance across sectors, analysts agreed that persistent inflation, volatile foreign exchange markets, and structural inefficiencies remain major obstacles. For Nigeria, the key challenge lies in converting headline growth into tangible improvements in jobs, investment, and living standards.