Nigeria has earned a spot among the top five largest African economies by Gross Domestic Product (GDP) in the third quarter of 2025, according to a new report by BusinessDay.
The economy expanded by 0.1% in the first quarter of 2025 compared to the last quarter of 2024. Growth came mainly from the non-oil sectors, including services, agriculture, and manufacturing.
While South Africa retained the top position, Nigeria’s diversified economic structure supported its performance. The steady contribution of non-oil industries helped reduce dependence on oil revenues.
Economists credit recent reforms for the improvement. They note that changes in business regulations, better policy clarity, and efforts to boost investor confidence have strengthened Nigeria’s growth outlook.
However, the 0.1% growth rate signals fragility. Experts highlight oil sector challenges and global economic headwinds as key constraints. They warn that sustaining this progress will require deeper structural reforms.
To remain competitive, Nigeria must increase non-oil exports, improve infrastructure, and raise productivity across key industries. Expanding power supply, transport networks, and digital systems will also help accelerate growth.
If these actions continue, analysts believe Nigeria could climb further in Africa’s economic rankings. A stronger economy may attract more foreign investment, create jobs, and enhance living standards.
The country’s performance reflects its resilience and potential, but maintaining momentum demands consistent policy execution and economic diversification. Sustained reforms can position Nigeria as a regional growth leader in the coming years.
