Nigeria’s economic expansion slowed to 3.98% year-on-year in the third quarter, data showed on Monday, as inflation and tight monetary policy weighed on activity.
Growth in services and agriculture, along with rising oil production, supported the expansion in July-September, but overall growth fell from 4.23% year-on-year in the second quarter.
The economy had expanded by 3.13% in the first three months of the year following updated calculations after a GDP rebasing exercise in July, aimed at reflecting structural changes in Africa’s most populous nation, according to Reuters.
In Q3, the oil sector grew 5.84% year-on-year, supported by an average daily crude output of 1.64 million barrels per day (bpd), up from 1.47 million bpd in the same quarter of 2024.
Despite this increase, the sector’s share of GDP declined to 3.44%, highlighting Nigeria’s continued reliance on non-oil activities.
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The non-oil sector expanded by 3.91%, driven by 4.15% growth in services and industry, while agriculture grew 3.77%, according to the National Bureau of Statistics.
The World Bank said in October that Nigeria had made progress in stabilizing its economy through recent policy reforms but urged further measures to improve living standards and curb rising food prices.
The Bank projects Nigerian GDP growth of 4.2% in 2025, up from 3.4% in 2024, and expects it to reach 4.4% by 2027, supported by services, agriculture, and non-oil industries.
Inflation is expected to ease gradually but remain high, standing at 16.05% in October, while the central bank’s main interest rate remains at 27%.
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Image Credit: Asorock Watches
