By Boluwatife Oshadiya

Copyright bizwatchnigeria

Nigeria’s economy gained more speed in the second quarter of 2025, expanding by 4.23% year-on-year—a noticeable leap from 3.48% in Q2 2024 and 3.13% in Q1 2025. The National Bureau of Statistics (NBS) confirmed this in its latest GDP report, noting that while oil played its part, non-oil industries were still the real heavy lifters.

So, what exactly fueled this growth? Let’s break down the top 10 sectors powering Nigeria’s GDP in Q2 2025, ranked by their share of total output.

1. Trade — 18.28%

Trade sat firmly at the top, contributing nearly a fifth of Nigeria’s GDP. Think of it as the economy’s market square—everything from wholesale deals in Lagos to the corner shops in Kaduna. Retail and wholesale activity are still the bread-and-butter of everyday life, and they thrive even when other sectors wobble. For policymakers, this raises an important question: shouldn’t infrastructure around logistics and supply chains get as much attention as oil pipelines?

2. Crop Production — 17.80%

If trade is the market square, crop farming is the soil beneath it. Agriculture, particularly crop production, remained a cornerstone. Rice, maize, cassava—these staples not only fill kitchens but also support millions of rural households. Yet, the paradox persists: despite its massive GDP share, smallholder farmers often struggle with credit, irrigation, and storage. It’s a classic case of “big on paper, thin on margins.”

3. Real Estate Services — 12.80%

You don’t need to live in Abuja to know real estate is booming. From luxury apartments in Lekki to industrial parks in Ogun State, property continues to generate big numbers. Interestingly, real estate’s contribution reflects both investment appetite and Nigeria’s housing deficit. Developers keep building, but affordability remains a sore point. Investors see opportunity; consumers see price tags that feel out of reach.

4. Telecommunications & Information Services — 11.18%

Here’s where things get modern. Telecoms and ICT together are reshaping Nigeria’s economy faster than any bulldozer. Data consumption, fintech adoption, and mobile banking are turning phones into mini-banks and classrooms. Remember when “recharging airtime” was just for calls? Now it’s the gateway to loans, bill payments, and even farming tips. This sector’s double-digit contribution shows just how digital the Nigerian economy has become.

5. Livestock — 5.90%

From cattle in Kano to poultry farms in Ogun, livestock held its ground as the second-largest agricultural contributor. Beyond food supply, the livestock sector links into leather exports, dairy production, and even cultural practices. But insecurity in grazing areas and rising feed costs remain persistent bottlenecks. Still, the demand is there—Nigeria is a protein-hungry nation.

6. Crude Petroleum & Natural Gas — 4.05%

Oil is back on the list, but not in its old glory. Once the undisputed king, petroleum and gas now account for just about 4% of GDP. Global energy shifts, theft in the Niger Delta, and OPEC+ quotas have clipped its wings. Still, a rebound in output during Q2 helped it stay relevant. The irony? Oil still drives forex earnings even though its share of domestic GDP has shrunk.

7. Construction — 3.60%

Look around Lagos or Abuja, and cranes dot the skyline. From roadworks in rural areas to mega housing estates in cities, construction remains a steady player. It’s not just about cement and steel—it’s jobs for artisans, contracts for SMEs, and infrastructure that supports other sectors. The only downside: rising costs of materials often push projects over budget.

8. Food, Beverage & Tobacco (Manufacturing) — 2.87%

Nigeria’s manufacturing base has its challenges—power supply, for one—but food, beverage, and tobacco are resilient. From Coca-Cola bottling plants to local breweries and indigenous snack companies, this sector feeds both the stomach and the tax purse. The growth here signals consumer demand is alive and well, even as inflation squeezes wallets.

9. Financial Institutions — 2.84%

Banks and financial services made their presence felt. Think of all the digital transfers, loans, investments, and insurance products flowing daily. Nigeria’s financial institutions aren’t just middlemen—they’re the nervous system connecting businesses and households. The Central Bank’s policies around credit and interest rates inevitably show up in this figure.

10. Public Administration — 2.73%

Government itself rounds out the top ten. Salaries, ministries, and administrative structures may not feel “productive” in the traditional sense, but they’re part of the economic machinery. Public administration’s steady contribution reflects Nigeria’s large civil service and government-driven spending patterns.

The Bigger Picture

Put together, these ten sectors show an economy tilting away from oil dependence toward a more diversified structure. Agriculture (through crops and livestock) and trade remain dominant, while digital and real estate sectors are climbing fast.

For investors, it signals opportunity across multiple industries, not just hydrocarbons. For policymakers, it’s a reminder that growth is only as strong as its weakest link—be it poor infrastructure, inflationary pressure, or insecurity in rural areas. And for everyday Nigerians? The numbers may feel abstract, but they’re woven into the price of rice at the market, the rent in the city, the call rates on your phone, and the job you may or may not have.

Nigeria’s 4.23% GDP growth in Q2 2025 is more than a statistic—it’s a story of resilience, change, and untapped potential.