How Nigeria’s Economy Can Be Revived

Nigeria’s Coordinating Minister of the Economy, Mr. Wale Edun, has welcomed the release of the country’s newly rebased GDP figures for 2024 and the Q1 2025 growth rate of 3.13 percent. 

He says these updated numbers give a clearer view of the economy and will help the government plan better. But beyond better data, Nigeria needs bold actions to turn these positive signs into real growth and widespread prosperity.

Here is why the rebased GDP matters and what steps can revive Nigeria’s economy.

A More Accurate Economic Snapshot

By rebasing GDP for the first time since 2014, the National Bureau of Statistics (NBS) has aligned our national accounts with global best practices.

The rebased data now reflects new industries,such as digital services, entertainment, and professional services, that have grown rapidly over the last decade.

It also shows that while agriculture and manufacturing remain strong, oil and gas now make up a smaller slice of the economy.

This new picture matters because it lets policymakers, investors and citizens see the real size and shape of Nigeria’s economy. “With better data, we can plan more effectively and deliver greater prosperity to all Nigerians,” Mr. Edun said.

Building on Q1 2025’s Growth

The 3.13 percent year-on-year growth in the first quarter of 2025, up from 2.4 percent in Q1 2024, shows that recent reforms are having an effect.

Under the current administration’s Renewed Hope Agenda, measures such as unifying the foreign exchange rate, cutting fuel subsidies, and pushing for more private investment have helped stabilise key sectors.

Reviving Nigeria’s Economy: Four Key Strategies

While better data and modest growth are welcome, Nigeria must take clear actions to turn these early gains into lasting recovery:

1. Invest in Productivity-Enhancing Infrastructure

Modern roads, reliable power and fast internet are the backbone of any growing economy. The government should fast-track public-private partnerships to build highways that link farms to markets, expand the national grid and roll out 4G/5G networks in towns and villages.

Improved logistics and stable electricity will cut business costs and boost manufacturing, agriculture, processing and services.

2. Support Digital Innovation and the Creative Sector

The rebased figures show that ICT, film, music and professional services now play a much larger role. To build on this, Nigeria must expand tech hubs, offer tax breaks for startups and fund training in coding and digital design.

Grants and low-interest loans for e-commerce and creative businesses will help young entrepreneurs turn ideas into jobs.

3. Strengthen Human Capital Through Education and Health

A growing workforce is only an asset if workers have the right skills and good health. The government should increase spending on schools, vocational centres and teacher training, with a special focus on science, technology, engineering and math (STEM) subjects.

In health care, expanding primary clinics and preventive programmes will keep workers healthy and reduce lost workdays.

4. Deepen Non-Oil Diversification

The drop in oil’s share of GDP shows that diversification policies are working, but more must be done. Agriculture can expand through better seeds, irrigation and farm-to-market roads.

Manufacturing should grow with ready-built factories in special economic zones, while export-credit lines help local producers reach global buyers. Clear policies and incentives will guide investors into value-added industries.

Turning Data into Action

The rebased GDP and solid Q1 2025 growth rate are strong starting points. But data alone cannot revive an economy. Mr. Edun’s call for planning must now be matched by rapid implementation.

With a clearer view of where the economy stands, Nigeria’s leaders can target resources to the fastest-growing sectors, cut red tape and engage with private investors more confidently.