Nigeria’s economy rebounds as dollar GDP hits $307bn

Nigeria’s economy expanded significantly in 2025, with its dollar-denominated gross domestic product rising by 22 per cent to about $307 billion, according to a report by Quartus Economics.

The report, titled Nigeria on the Rise Again, attributed the growth to stronger economic output and a modest appreciation of the naira. It noted that the increase comprised an 18.43 per cent rise in nominal GDP and about a three per cent gain in the local currency.

According to the analysis, Nigeria’s GDP in dollar terms climbed from roughly $252 billion in 2024 to $307.5 billion in 2025, pushing the economy back above the $300 billion threshold after earlier declines.

The report explained that nominal GDP grew from N372.8 trillion to N441.5 trillion within the period, while the average exchange rate improved from N1,479/$ to N1,436/$, supporting overall growth.

It added that the naira’s appreciation was reflected in the dollar value of one million naira, which rose from $676.13 in 2024 to $696.38 in 2025.

Nigeria’s performance outpaced the Sub-Saharan Africa average dollar GDP growth of 10.33 per cent and exceeded growth levels recorded by several major African economies, including South Africa, Egypt, Algeria, Kenya, Senegal, Cote d’Ivoire, Tanzania, Morocco and Angola. Only Ghana recorded stronger growth at 37.7 per cent.

The report stated that Nigeria accounted for nearly 28 per cent of Africa’s total GDP growth in dollar terms in 2025, increasing its share of the continent’s economy to about 14.43 per cent from 13.05 per cent in 2024.

On income levels, GDP per capita rose by 19.5 per cent to $1,295 in 2025 from $1,083 in the previous year, despite a population growth rate of 2.1 per cent.

The report noted that this improvement exceeded the regional average and reflected stronger economic expansion relative to population growth.

It also highlighted gains in Nigeria’s relative economic standing, with per capita income rising closer to regional and global benchmarks.

According to the report, the improvements were driven by currency stability, increased production, and moderating population growth, with greater contributions from the real sector of the economy.

However, it cautioned that Nigeria’s GDP and income levels remain below historical peaks and those of several peer economies, stressing the need for sustained reforms and consistent macroeconomic policies.

Recent data from the National Bureau of Statistics showed that the economy grew by 4.07 per cent year-on-year in the fourth quarter of 2025, compared to 3.76 per cent in the same period of 2024.

On a full-year basis, the economy recorded 3.87 per cent growth in 2025, surpassing the 3.38 per cent achieved in 2024 and exceeding the 3.4 per cent growth projection by the International Monetary Fund.

The report concluded that while Nigeria’s growth momentum is strengthening, sustaining it will depend on deeper structural reforms, improved productivity, and stable economic policies.