Nigeria’s Q1 2025 GDP figures, released by the National Bureau of Statistics (NBS), show that the economy is seeing strong traction in select infrastructure and services sectors despite broader structural challenges.
According to data from the National Bureau of Statistics (NBS), Rail Transport and Pipelines emerged as the fastest-growing sector in the quarter, expanding by 28.95% year-on-year, reflecting increased activity in freight movement and capital deployment into railway infrastructure.
Close behind was the Metal Ores sector, which grew by 25.20%, a continuation of momentum from 2024 amid improved global demand and rising local extraction.
Analysts believe this growth could be linked to ongoing investment in solid minerals and the federal government’s push to diversify the export base.
The Electricity, Gas, Steam, and Air Conditioning Supply sector posted a surprising rebound, growing by 18.65%, its strongest performance in recent quarters. This may be attributed to improved grid stability and expanded energy access, particularly in industrial corridors.
The top 10 fastest-growing sectors posted annual growth rates ranging from 7.8% to nearly 29%, indicating pockets of economic resilience.
Here’s a breakdown of each top-performing sector and what’s driving their momentum.
Telecoms continued its reliable upward trend, though Q1 2025 growth slightly slowed from 8.11% in Q4 2024. Still, it improved YoY from 4.04% in Q1 2024.
This reflects a continued expansion in broadband (4G/5G), growing data usage, and digital adoption across businesses and households. While competition is high and ARPU (Average Revenue Per User) remains a concern, the sector remains a strong backbone for digital transformation.
This sector held its ground with only a marginal dip from 9.52% in Q4 2024. On an annual basis, it improved from 6.41% in Q1 2024.
Growth here is typically driven by urban population growth, infrastructure demand, and ongoing PPP projects in solid waste management, water reticulation, and sanitation services in states like Lagos, Rivers, and FCT.
Rising demand for clean water and improved sanitation also created opportunities for private operators.
This is a stable sector benefiting from steady capital and municipal support.
This is a stable sector benefiting from steady capital and municipal support.
This sector experienced moderate growth from Q4 2024 at 7.17% to 9.63% in Q1 2025. However, on a year-on-year basis, it is slightly down from 10.74% in Q1 2024.
The sector is showing steady demand for live entertainment, gaming, and recreational events. With fewer restrictions and growing disposable income in urban areas, entertainment events picked up.
Additionally, sports betting and mobile gaming platforms saw increased activity, supporting revenue generation in this space.
The creative economy continued its upward swing. After a soft Q4 2024 growth of just 0.95%, the sector surged to 9.63% in Q1 2025. YoY growth was also solid compared to 5.25% in Q1 2024.
The global visibility of Nigerian content, increased investment in local film production, music streaming platforms, and export of creative content, fueled the sector’s growth.
Nollywood releases, growing presence on Netflix, and international awards boosted demand for Nigerian content both at home and abroad.
This marks a turnaround from consecutive quarters of contraction in 2024.
Oil refining showed a sustained recovery. From a 9.36% growth in Q4 2024, it moved up modestly to 11.51% in Q1 2025, but more impressively, it reversed a deep contraction of -27.87% recorded in Q1 2024.
The growth reflects increased domestic refining volumes, possibly due to the modular refineries coming onstream and pre-commissioning activities at larger plants. Though Dangote Refinery is yet to ramp up to full capacity, spillover effects are beginning to show in the official numbers.
The financial sector posted one of the strongest improvements in Q1 2025. It jumped from 5.93% in the previous quarter and just 1.69% a year earlier.
The yearly and quarterly leaps are indicative of strong interest income due to high MPR, as well as growing credit to the private sector, the continued rise of digital banking, and fintech operations. The sector is clearly benefitting from tighter monetary policy and rising financial inclusion.
The sector’s resilience was also supported by improved asset quality and ongoing recapitalization efforts.
Road transport remained steady, inching up slightly from 16.84% in Q4 2024 and 17.21% in Q1 2024.
The sector appears to be on a stable growth path, supported by resilient demand for logistics and commuter transport.
Continued improvements in road infrastructure, coupled with logistics-driven economic activity, are helping sustain momentum.
This sector made a strong comeback in Q1 2025. After contracting by -7.97% in Q4 2024, it rebounded sharply to 18.65%. Compared to Q1 2024’s modest 2.49%, the YoY performance is even more impressive.
The rebound may reflect seasonal demand, better grid management, and results from reforms in the power value chain. Gas-fired generation also benefitted from improved domestic supply.
This is one of the most notable sectoral turnarounds of the quarter.