Abuja / Lagos — Nigeria’s economy recorded a 3.98 per cent growth in the third quarter of 2025, a modest expansion that has intensified calls for decisive reforms to unlock faster, broader-based and more sustainable growth.
The National Bureau of Statistics (NBS) said the Gross Domestic Product (GDP) grew in real terms on a year-on-year basis, reflecting increased output of goods and services across key sectors of the economy.
However, the performance remains below the Federal Government’s 4.6 per cent growth target for 2025, and its long-term ambition of achieving about seven per cent annual growth needed to drive sustainable development.
The Central Bank of Nigeria (CBN) had projected a 4.1 per cent growth rate for 2025, citing easing inflation and improved foreign exchange inflows, while the International Monetary Fund (IMF) recently revised Nigeria’s growth forecast upward to 3.9 per cent.
Economists Call for Targeted Interventions
Against this backdrop, economists who spoke with to the media on Friday said targeted policy interventions could help bridge the gap between projections and actual performance.
Prof. Sherifdeen Tella of the Department of Economics, Babcock University, urged the government to prioritise investment in the industrial sector to stimulate domestic production.
“The government should empower domestic production firms in critical areas with funds that can be repaid in the future,” Tella said, likening the approach to the U.S. industrial bailout during the 2008 global financial crisis.
He also stressed the importance of subsidising energy, particularly electricity and petroleum products, to support productivity, and called for sustained peace in the Niger Delta to boost oil production and export earnings.
Business Environment and Security
Similarly, Prof. Ndubisi Nwokoma of Caleb University said improving the business environment and ensuring macroeconomic stability were essential to accelerating growth.
“Insecurity must be reduced to restore investor confidence in the economy,” he said, adding that Nigeria should prioritise the development of its rare earth minerals through partnerships with experienced private firms to boost exports and revenue.
Agriculture as Growth Driver
Former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr Okechukwu Unegbu, said increased investment in modern agriculture could significantly accelerate economic growth.
He urged the government to allocate at least 10 per cent of the annual budget to agriculture, in line with recommendations by the Food and Agriculture Organisation (FAO), to mechanise the sector and strengthen its value chain.
Unegbu also called for incentives to encourage private sector participation in agricultural processing and packaging, noting that value addition would enhance the sector’s contribution to the economy.
