Lagos, Dec. 25, 2025 (Naija247news) – Nigeria’s economic growth could exceed current projections if momentum in the services, agriculture and oil and gas sectors is sustained, economic experts have said, urging the Federal Government to deepen investment in productive sectors to consolidate recent gains.
Prof. Ken Ife, Lead Consultant to the ECOWAS Commission, said Nigeria’s Gross Domestic Product (GDP) outlook remains positive, particularly as seasonal consumption patterns and policy reforms begin to stimulate broader economic activity.
Speaking in an interview, Ife noted that the services sector is expected to record stronger performance in the current quarter, driven by increased consumer spending during the festive period.
“This period falls within the ember months, when most Nigerians tend to spend more on goods and services, which boosts aggregate consumption and supports GDP growth,” he said.
He identified transportation costs as one of the biggest constraints to consumer spending in recent months, but said the situation has improved with the availability of relatively more affordable petroleum products from the Dangote Refinery.
“The major concern would have been transportation costs, but this is now being moderated by the supply of cheaper fuel products from the Dangote refinery,” Ife said.
Tax Reforms to Boost Household Spending
Ife also highlighted the role of the newly implemented tax reforms in strengthening household purchasing power and stimulating economic expansion.
He explained that exemptions on Value Added Tax (VAT) for medical equipment, educational materials and other essential items would enable households to retain more disposable income.
“When people retain more of their income, they are able to channel spending into other sectors of the economy, which creates a multiplier effect and supports overall growth,” he said.
According to him, the reforms would particularly benefit Small and Medium Enterprises (SMEs), especially those with annual turnovers below ₦100 million, which now qualify for significant tax relief.
“This will allow SMEs to grow, expand production and create employment opportunities, particularly for young people,” Ife added.
Oil Output, Stability Supporting Growth
The economist also pointed to improvements in the oil and gas sector, noting that Nigeria’s crude oil output has risen to about 1.8 million barrels per day, supported by relative peace in oil-producing regions and the opening of new production frontiers.
“The oil and gas sector is showing signs of recovery and remains a key contributor to growth,” he said.
Agriculture, Power Critical to Sustained Expansion
Also speaking, Mr Chris Nemedia, a former Director of Research at the Central Bank of Nigeria (CBN), said sustained economic growth would depend largely on government commitment to improving the business environment.
Nemedia called for increased budgetary allocation to agriculture and its entire value chain, describing the sector as essential to inclusive growth and food security.
“The government needs to mechanise farming with more tractors and strengthen processing capacity to reduce post-harvest losses and ensure food security,” he said.
He added that such investments would position Nigeria for self-sufficiency and future export growth.
“With our vast arable land and youthful population, Nigeria has the potential to become a net exporter of food if the right investments are made,” Nemedia said.
The former CBN official also urged authorities to prioritise the power sector, stressing that reliable and affordable electricity remains critical to industrial productivity.
“Improved power supply will boost domestic production, reduce reliance on imports and significantly accelerate economic growth,” he said.
GDP Growth Trends
Data from the National Bureau of Statistics (NBS) support the experts’ optimism. The statistics agency reported that Nigeria’s GDP grew by 3.98 per cent year-on-year in the third quarter of 2025, compared with 3.86 per centrecorded in the same period of 2024.
The NBS disclosed this in its GDP Report for Q3 2025, released in Abuja earlier this week.
Analysts say sustaining this upward trend will require consistent policy implementation, improved infrastructure and stronger private-sector participation across key sectors of the economy.
Emma Tochi ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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