The Centre for the Promotion of Private Enterprise wants special attention to be given to sectors of the economy that were contracting or in recession, as it projected a $450bn economy by year-end.
This call was made on Sunday in the CPPE’s Statement on Nigeria’s GDP Re-basing, Q1 2025 GDP Report, and Sectoral Analysis, signed by the Managing Director/Chief Executive Officer, Dr. Muda Yusuf.
The CPPE projected that the GDP could reach an estimated $450bn by year-end if the Nigerian economy progressively recovers from the shocks of the current economic reforms without any major disruptions.
Analysis of the latest GDP report indicated that 37 sectors recorded growth (many, however, slowed), nine sectors contracted, and three sectors were in recession as of Q1, 2025.
Top-performing sectors included financial services [15.3 per cent], oil refining [11.51 per cent], transportation [14.08 per cent], ICT [7.4 per cent], and metal ores [25 per cent]. The following sectors contracted: Livestock [-16.7 per cent], fishing [-0.21per cent], textiles [-1.63 per cent], coal mining [-22.3 per cent], quarry & minerals [-21.55 per cent], plastics and rubber [-3.2 per cent], iron & steel [-0.35per cent], Air Transport [-0.81 per cent]. Sectors in recession include air transport, textiles, and coal mining. This follows their consistent contraction over the past few quarters.
Yusuf said, “Special attention is needed for sectors in recession, those that contracted, and those experiencing slow growth. Addressing structural challenges, improving access to finance, tackling insecurity, and fostering innovation will be critical to stimulating recovery and growth.
“High-performing sectors should continue to receive support to sustain and further improve their output, leveraging their potential as engines of growth, revenue generation, and job creation. There is a pressing need to address the disconnect between the non-oil sector’s significant GDP contribution and its relatively lower contribution to government revenue. Strengthening tax administration, broadening the tax base, optimising non-tax revenues, and promoting formalisation of economic activities in the informal sector are essential steps.”
The CPPE boss also advocated for more frequent and timely GDP rebasing exercises to ensure that economic data remains current and relevant for policy and investment decisions.
According to the newly rebased figures, Nigeria’s nominal GDP was reported at N372.82tn as of 2024, representing a 41 per cent increase over the 2019 nominal GDP. The economy recorded a growth rate of 3.38per cent in 2024. In Q1 2025, GDP growth moderated slightly to 3.13 per cent, with total output for the quarter at N94tn. This brings Nigeria’s cumulative GDP at the end of Q1 2025 to approximately N466tn, or an estimated $300bn.
The private sector organisation indicated that the latest GDP data highlighted the need to strengthen productivity in critical sectors such as agriculture, manufacturing, and trade.
“These sectors are essential for economic inclusion, job creation, self-reliance, economic security, and diversification. However, their current growth rates remain below expectations: agriculture grew by only 0.7 per cent and manufacturing by 1.7 per cent in Q1 2025. These sectors require targeted interventions to unlock their full potential and drive sustainable development,” the statement noted.
Major contributors to GDP included trade, crop production, real estate, ICT, construction, petroleum and gas, food and beverage, financial institutions, and manufacturing. The oil sector contributed 3.97 per cent to GDP, while the non-oil sector accounted for 96.03 per cent, indicating the sustained dominance of the non-oil sector in the Nigerian economy. But productivity remains a major challenge for the sector.
The share of agriculture improved from 22.12 per cent to 25.8 per cent, and the service sector’s contribution increased to 53.09 per cent from 50.22 per cent pre-rebasing. The real estate sector ranking rose to third among GDP contributors, following crop production (17.58 per cent) and trade (17.42 per cent), with real estate at 10.78 per cent, ICT at 6.18 per cent, and crude oil at 5.85 per cent.
Raising the issue of productivity, CPPE said, “Despite the non-oil sector’s dominant contribution to GDP, its share of government revenue remains disproportionately low. This indicates persistent productivity and revenue mobilisation challenges in the non-oil economy, which must be addressed to ensure fiscal sustainability and inclusive growth.”
The CPPE went on to commend the National Bureau of Statistics for this important milestone despite its resource limitations.
Provided by SyndiGate Media Inc. (Syndigate.info).
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