Nigeria’s GDP rises after rebase, but not enough to reclaim title of Africa’s richest country

Nigeria’s economy has been revised upward following changes in how gross domestic product (GDP) is calculated, with more informal sectors now included in the official data.

According to the latest data from the NBS, Nigeria’s GDP grew by 3.13% year-on-year in real terms in the first quarter of 2025, a notable improvement from the 2.27% growth recorded in the same period last year.

GDP at current prices stood at 372.8 trillion naira ($243 billion) in 2024, up from 314 trillion naira in 2023, according to the statistics agency

The adjustment is based on a change in the base year to 2019, which the NBS says was necessary to present a more accurate and updated picture of the economy’s structure.

The services sector remained the dominant driver of growth, expanding by 4.33% year-on-year.

“Following the benchmarking of the estimates, the performance of the GDP in Q1 of 2025 was driven mainly by the service sector, which recorded a growth rate of 4.33% and contributed 57.15% to the aggregate GDP,” said Statistician-General Adeyemi Adeniran.

Meanwhile, agriculture, which continues to employ a significant share of the population, grew marginally by 0.07%, a recovery from the -1.79% contraction recorded in Q1 2024.

Despite the upward revision, Nigeria now ranks as the fourth-largest economy in Africa, trailing behind South Africa ($410.3 billion), Egypt ($347.3 billion), and Algeria ($268.9 billion), according to current estimates.

The country has faced significant economic challenges in recent years, including surging inflation and a sharp currency devaluation that have weighed heavily on consumer purchasing power and investor sentiment.

Since taking office, President Bola Tinubu has introduced sweeping economic reforms aimed at restoring macroeconomic stability. These include floating the naira, removing long-standing fuel subsidies, and addressing chronic dollar shortages.