Nigeria has sustained a 3.98 percent economic growth in the third quarter of 2025.
The National Bureau of Statistics data on Monday showed that the non-oil sector, such as agriculture and service sectors, pushed Africa’s most populous country to consecutive growth.
Nigeria’s national GDP rose to N113.59 trillion in nominal terms, while real GDP was recorded at N57.03 trillion in the third quarter of 2025.
NBS data indicated that the agriculture sector expanded by 3.79 percent, an improvement from the 2.55 percent recorded in Q3 2024.
However, the services sector remained the country’s economic engine driver, contributing 53.02 percent of total output, followed by agriculture at 31.21 percent.
Information communications technology, financial services, real estate, and trade were among the standout performers in the Q3 GDP data.
While macroeconomic gains are laudable, micro has continued to suffer as economists point to a disconnect between macro- and microeconomic levels.
According to economists and financial analysts, the weak transmission mechanism is why the cost of living has remained elevated for the majority of Nigerians.
In a separate interview on Monday, the Executive Officer of SD & D Capital Management, Gbolade Idakolo, a renowned economist and former president and chairman of the Council of the Chartered Institute of Bankers, Prof. Segun Ajibola, a former president of CIBN, Mazi Okechukwu Unegbu, and university don, Prof. Godwin Oyedokun revealed a major problem with Nigeria’s GDP growth rate.
Living standards have yet to reduce despite GDP growth rate – Prof. Ajibola
Prof. Ajibola described Nigeria’s steady GDP growth as “encouraging,” especially with increased contributions from real-sector activities such as agriculture.
He noted that agricultural output typically rises during the harvest season, boosting the sector’s overall performance. According to him, food prices have dropped in recent months, but high transportation, energy, and storage costs and persistent security challenges continue to keep the overall cost of living elevated.
He, however, cautioned that while the improved GDP growth rate signals a measure of macroeconomic stability, it does not automatically translate to better living conditions for ordinary Nigerians.
He stressed that Nigeria’s “weak transmission mechanisms” between macroeconomic gains and household welfare remain a major barrier.
According to him, “It will take a combination of monetary, fiscal, and political efforts to strengthen the links between the nominal and real segments of the economy for the benefits of growth to cascade down to the mass of the people.”
Struggling with high Living costs amid GDP growth rate – CEO Idakolo
On his part, Idakolo said Nigeria’s latest GDP data highlights the impact of targeted government policies in the agricultural sector but warns that many citizens are still unable to cope with rising living costs.
He noted that recent government initiatives are beginning to yield results. He cited policy actions such as increased state-level collaboration—including the Lagos–Kebbi partnership for Lake Rice production—the lifting of the ban on selected food imports, and expanded government support aimed at improving the business environment for farmers.
According to him, these interventions have contributed to a reduction in prices of some staple foods across markets.
Despite this progress, Idakolo stressed that the economic realities for many Nigerians remain harsh. He pointed out that the current minimum wage of N70,000 is still insufficient for most households, given the prevailing cost of food items and other essentials.
He said the gap between falling food prices and citizens’ purchasing power shows why “most Nigerians still find it difficult to meet their basic feeding needs,” despite the recent gains in the agricultural sector.
Why Nigerians should be cautious of Nigeria’s GDP growth rate in Q3 – Unegbu
Unegbu said the Nigerians should view the latest GDP figures with caution.
According to him, although the numbers indicate improvement, they may not fully reflect current economic realities.
“The GDP growth rate in Q3 2025 of 3.98 percent—these are statistics anyway. It may not represent the real part because by the time you see the statistics, a lot of water has passed under the bridge. But at the same time, I think Nigeria is progressing, except that we cannot see the impact in the marketplace.”
Unegbu noted that while growth is evident on paper, Nigerians are still waiting to feel its effect in their daily economic lives.
It means little without relief for households — Prof Oyedokun
Oyedokun, on his part, described Nigeria’s 3.98 per cent Gross Domestic Product (GDP) growth in the third quarter of 2025 as a “mixed picture,” saying the gains remain distant from the daily realities of most Nigerians.
He noted that although the agriculture-driven growth signals an expanding economy, it has not translated into lower living costs or improved welfare for citizens.
Oyedokun said the strong performance of the agricultural sector indicates increased output, improved production cycles and resilience among farmers despite persistent structural challenges.
“This kind of growth usually suggests better food supply, stronger rural productivity and increased contributions to national output,” he explained.
However, he stressed that Nigerians were justified in questioning what the growth truly means for their livelihoods, as several factors continue to weaken the impact of GDP expansion.
According to him, food inflation remains stubbornly high, as insecurity, logistics bottlenecks, rising energy costs and poor transport infrastructure continue to push up prices despite higher agricultural output.
He added that structural inflation is overshadowing economic gains, driven by exchange rate instability, fuel costs, import dependence and rising production expenses — all of which erode household purchasing power.
Prof. Oyedokun further pointed out that the growth recorded is not yet inclusive, as smallholder farmers—who make up the bulk of the agricultural workforce—still face limited access to credit, poor mechanisation and weak market links.
“Wages are not keeping pace with inflation, so even in a growing economy, households feel poorer,” he said, adding that policy reforms take time before their impact becomes visible in prices, transportation and living standards.
While acknowledging the positive signal from the latest GDP figures, he emphasised that Nigerians want growth they can feel — stable prices, affordable food, functional markets and stronger purchasing power.
He made a case for targeted interventions, including improved security in farming communities, reduced logistics costs, enhanced storage and processing facilities, stronger foreign exchange stability and policies that support both large and small-scale producers.
“Until inflation is tamed and incomes begin to rise, GDP growth will remain encouraging on paper but distant from daily realities,” Oyedokun said.