Nigeria Transport Sector Growth Slows to 9.87% in Q3 2025 Amid Infrastructure Challenges

Nigeria’s transport sector growth decelerated to 9.87 percent in the third quarter of 2025, reflecting ongoing infrastructural challenges that continue to affect the industry’s overall performance. This represents a decline of 0.23 percentage points compared to the same period in 2024, when growth was recorded at 10.10 percent, according to the National Bureau of Statistics (NBS).

The slowdown is attributed to persistent infrastructure deficits, including poor road conditions, congested ports, outdated rail systems, and severe traffic congestion. These challenges, coupled with high operational costs, regulatory bottlenecks, and security concerns, have led to delays in transportation, damaged goods, and slowed trade activity across the country. Experts say the sector urgently requires increased funding, policy reforms, and integrated modern logistics solutions.

Despite the slowdown in growth, the transport sector’s contribution to Nigeria’s real GDP slightly improved, reaching 0.69 percent in Q3 2025, up from 0.65 percent in the same quarter of 2024. The sector comprises six key activities, including road, rail, air, water, pipelines, and postal and courier services, with four out of six sub-activities recording positive growth during the period.

In nominal terms, the industry grew by 24.35 percent year-on-year, lower than the 37.53 percent recorded in Q3 2024 but higher than the 13.67 percent growth recorded in the previous quarter. Transport activities contributed 0.96 percent to nominal GDP in the third quarter, compared to 0.92 percent in the same period last year, showing modest improvement despite operational constraints.

Analysts note that for Nigeria to maintain sustainable growth in the transport sector, the government and private investors must prioritize infrastructure development, reduce regulatory hurdles, and adopt innovative logistics solutions. Without these interventions, the sector risks continued slow growth, which could have wider implications for trade and economic expansion in the country.

source: Business day