Nigeria’s economic structure continues to shift significantly following the latest Gross Domestic Product (GDP) rebasing exercise by the National Bureau of Statistics (NBS), which now uses 2019 as the benchmark year instead of 2010. The updated base year offers a more accurate snapshot of current sectoral performance, capturing fast-growing industries like digital services while correcting for the inflationary distortions of older sectors.
According to the NBS, the country’s GDP at current prices reached ₦94.05 trillion in the first quarter of 2025—reflecting an 18.30% year-on-year increase from ₦79.51 trillion in Q1 2024. However, when compared to the ₦104.47 trillion recorded in Q4 2024, GDP dipped by 9.97%, signaling the effects of seasonal trends and the impact of ongoing monetary tightening.
Despite economic headwinds such as inflation and currency depreciation, Real Estate emerged as the top-performing sector in nominal terms during the quarter, followed closely by Trade, Crop Production, and the Telecommunications & Information Services sector.
Together, Nigeria’s ten largest industries contributed 75.17% of the nation’s nominal GDP, underlining their collective influence on national output.
Nigeria’s Top 10 Economic Sectors in Q1 2025 (Nominal GDP)
10. Textile, Apparel, and Footwear – ₦2.45 Trillion
The local fashion and textile sector maintained its presence in the top 10 despite a dip from ₦2.65 trillion in Q4 2024. Still, the industry grew year-on-year due to strong domestic demand for Nigerian-made garments and shoes. Federal and state-backed SME programs and the revitalization of old textile hubs in Kaduna and Aba played a role. However, input costs and sluggish export traction under the AfCFTA remain concerns.
9. Financial Institutions – ₦2.62 Trillion
The financial services industry posted modest growth, increasing from ₦2.56 trillion in Q4 to ₦2.62 trillion in Q1. The sector accounted for 2.79% of total GDP. Rising interest income and digital banking adoption helped sustain momentum. Investor confidence was further supported by the Central Bank of Nigeria’s recapitalization policy targeting Tier-1 banks. However, liquidity pressure and FX-related losses continue to impact margins.
8. Livestock – ₦3.32 Trillion
The livestock industry experienced the most pronounced quarterly decline among the top sectors, falling 55.67% from ₦7.49 trillion in Q4. Despite the seasonal drop following festive slaughter peaks, the sector still contributed 3.53% of GDP. Poultry farming and increasing dairy consumption remain bright spots, though the sector faces persistent cost challenges from rising feed prices.
7. Food, Beverage, and Tobacco – ₦3.53 Trillion
Manufacturing activity in the food, beverage, and tobacco segment showed resilience, expanding by 3.48% to ₦3.53 trillion. The industry represented 3.75% of GDP, fueled by consistent demand for packaged goods, snacks, drinks, and tobacco products. To navigate currency volatility, many producers leaned heavily on locally sourced inputs, preserving output levels and mitigating forex exposure.
6. Crude Petroleum and Natural Gas – ₦3.67 Trillion
Nigeria’s oil and gas sector rebounded with an 11.8% quarter-on-quarter growth from ₦3.28 trillion in Q4 to ₦3.67 trillion in Q1. While nominal output rose, its GDP share remained subdued at 3.90%. Lingering issues, including pipeline sabotage, underinvestment in upstream projects, and the sluggish execution of the Petroleum Industry Act, have continued to cap potential output gains despite a slight improvement in global oil prices.
5. Construction – ₦5.06 Trillion
The construction industry grew nearly 10% in the first quarter, climbing from ₦4.6 trillion in Q4 to ₦5.06 trillion. Contributing 5.38% to GDP, the sector benefitted from both public investments in infrastructure and private sector-driven residential and commercial developments. Rising input prices, particularly for cement and imported materials, remain a constraint on expansion.
4. Telecommunications and Information Services – ₦7.24 Trillion
With a GDP share of 7.70%, the telecommunications sector demonstrated continued stability, even as nominal output dipped slightly by 1.91% compared to the previous quarter. Ongoing demand for mobile internet, online platforms, and broadband services helped sustain growth. Enhanced rural connectivity, fintech expansion, and growing data center investments further propped up sectoral performance.
3. Crop Production – ₦11.78 Trillion
Agriculture’s dominant segment—crop production—contracted sharply by 38.32%, falling from ₦19.1 trillion in Q4 to ₦11.78 trillion in Q1. Despite the drop, it still made up 12.53% of the economy. Post-harvest declines, insecurity in key farming zones, climate variability, and rising input costs weighed heavily on performance. Nevertheless, government support via fertilizer programs and irrigation projects helped cushion the decline, while inflation kept nominal figures high.
2. Trade – ₦14.59 Trillion
Despite a 27.2% quarter-on-quarter decline from ₦20.04 trillion, the trade sector retained its spot as the second-largest GDP contributor with ₦14.59 trillion (15.52% of GDP). The decline reflected reduced consumer spending, inflationary pressures, and tighter import regulations. Still, the resilience of informal commerce and cross-border activity, along with digital customs innovations, helped keep the sector afloat.
1. Real Estate – ₦16.42 Trillion
Real estate took the lead as Nigeria’s top sector by nominal GDP in Q1 2025, surging by an unprecedented 80.09% from ₦9.12 trillion in Q4 to ₦16.42 trillion. This growth, equivalent to 17.46% of the GDP, was powered by investments in urban housing projects and infrastructure in key cities such as Lagos and Abuja. Demand for residential spaces, commercial buildings, and land continued to rise amid rapid urbanization and expanding middle-class housing needs.
Conclusion
Nigeria’s Q1 2025 GDP figures not only reflect macroeconomic challenges such as inflation and exchange rate volatility but also showcase sector-specific resilience and dynamism. While traditional sectors like oil and agriculture faced headwinds, real estate and digital services captured expanding market share, highlighting the changing face of the Nigerian economy.
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