Nigeria’s GDP expected to expand between 3.2% and 3.9% in Q2 2025 on rebasing, stable FX, stronger business activity

Nigeria's GDP is projected to expand between 3.2% and 3.9% in Q2 2025 due to GDP rebasing, stable foreign exchange rates, and increased business activity. Analysts anticipate that the real GDP growth in Q2 will surpass that of Q1 2025, reflecting enhanced macro stability and rising output.

The recent GDP rebasing and relative exchange rate stability have contributed to growth across the financial services and telecom industries. The Purchasing Managers Index (PMI) averaged higher in Q2 compared to Q1 2025 and Q2 2024, indicating improved business activity.

The service sector has shown resilience despite challenges in the oil industry. Factors such as bank recapitalization, tariff liberalization, and industrial sector improvements are expected to drive growth in Q2.

Overall, Nigeria's economy is poised for faster growth in Q2 2025, supported by macroeconomic stability, moderate inflation, stable currency, and increased foreign reserves.