The Nigerian economy is demonstrating sustained recovery and resilience in 2025, according to the latest “Capital Pulse” report from Woodhall Capital. The report highlights key economic indicators and policy developments, offering insights into the country’s macroeconomic landscape, capital markets, and future funding trajectory.
Sustained GDP Growth and Sectoral Shifts
Nigeria’s economy grew by 3.13% year-on-year in the first quarter of 2025. This growth was primarily driven by the Services sector, which expanded by 4.33% and accounted for 57.5% of the GDP. The Industrial sector also saw commendable growth of 3.42%, an increase from 2.35% in Q1 2024, reflecting renewed activity in construction and manufacturing. The Agricultural sector posted a marginal recovery at 0.07%, compared to a contraction of -1.79% in the same period last year. The non-oil sector grew by 3.19%, while the oil sector’s growth slowed to 1.87%.
Rebased GDP and Its Implications
Nigeria’s recent GDP rebasing, which used 2019 as the new base year, revealed a significantly larger economy than previously estimated. The nominal GDP for 2024 is estimated at ₦372.82 trillion. The rebasing also shows a significant change in the broad structure of the economy, with a rise in the share of agriculture and services sectors and a fall in the share of the industries sector in nominal terms. The services sector now accounts for over 53% of the economy, showing growth in finance, tech, and logistics. A bigger economy in nominal terms signals more market potential to investors and improves Nigeria’s global economic ranking.
Monetary Policy and Inflation
Inflation remained elevated at 22.6% year-on-year in June 2025, though it moderated slightly from 23.1% in May. The persistence of price pressures is attributed to FX volatility and subsidy rationalization. As a result, household purchasing power remains under pressure , and further monetary tightening is likely, which will affect the cost of credit.
Opportunities in the Electricity Sector
The adoption of the Electricity Act of 2023 is creating new funding opportunities in the power sector. This is leading to a rise in private-led mini-grid investments, especially in underserved regions. Development Finance Institutions (DFIs) and blended finance vehicles are targeting clean energy expansion through state-private partnerships. States with regulatory readiness and bankable Public-Private Partnerships (PPPs) are in the best position to attract concessionary funding, particularly for renewables and distribution infrastructure.
