Nigeria’s economy recorded a year-on-year GDP growth of 3.98% in the third quarter of 2025, according to the latest data from the Centre for the Promotion of Private Enterprise (CPPE). While this is slightly lower than the 4.3% growth seen in Q2, the think tank describes it as a sign of continued macroeconomic stability. Dr. Muda Yusuf, CEO of CPPE, emphasized that the country is on a “gradual but steady recovery path,” driven by stabilizing exchange rates, moderating inflation, and rising investor confidence.
Despite the positive growth numbers, CPPE warned that many Nigerian households could still face a rising cost of living. The organization noted that while prices for some food and manufactured goods are easing, inflationary pressures continue to weigh heavily on families. The think tank called for urgent targeted interventions to protect vulnerable groups and ensure that economic growth translates into tangible benefits for citizens.
Sectoral performance revealed mixed outcomes. The services sector, driven by digital adoption, financial inclusion, and improved business sentiment, remained the primary engine of growth, contributing 53% of GDP. ICT expanded by 5.78%, while real estate saw an extraordinary 89% nominal growth. However, manufacturing lagged with only 1.25% growth, hampered by high energy costs, reliance on imported inputs, and smuggling. Agriculture and trade showed modest improvements, while social sectors like education and health remained underfunded.
CPPE highlighted that structural constraints continue to limit productivity and competitiveness. Persistent issues in agriculture, manufacturing, trade, and housing are contributing to cost-of-living pressures. The think tank urged the government to accelerate reforms, including improving electricity supply, reducing logistics costs, supporting mechanization in farming, and enhancing housing affordability. Targeted investments in social sectors and non-oil exports were also recommended to sustain growth and boost inclusive development.
Looking ahead, CPPE stressed that with strengthened governance, strategic reforms, and sector-focused policies, Nigeria has the potential to achieve stronger and more inclusive economic outcomes. The organization pointed to accelerated growth in sectors such as pharmaceuticals, construction, oil refining, and entertainment as opportunities to diversify the economy and reduce pressure on households, highlighting the need for urgent policy action to translate GDP gains into improved living standards.
source: nairametrics