KEY POINTS

• Nigeria’s economy grew strongly between 2024 and 2025, marking its best performance in over a decade.
• GDP and income per person increased significantly, reversing earlier declines in living standards.
• The government credited reforms for the progress but said more work is needed to sustain growth and improve livelihoods.

Nigeria’s economy is showing clear signs of recovery after a difficult period marked by slow growth and declining living standards.

A new report by Quartus Economics indicates that the country has made strong progress over the past two years, with improvements in key economic indicators.

The report concludes that the economy is back on a growth path, highlighting gains in output and income levels. It also notes that Nigeria’s recent performance compares favourably with other countries in the region and beyond.

According to the findings, Nigeria recorded a combined Gross Domestic Product growth of 8.34 percent between 2024 and 2025. This marks the strongest two-year expansion in over a decade and is significantly higher than the country’s population growth rate, which was estimated at less than 4.4 percent.

This represents a major turnaround from the period between 2020 and 2023, when economic growth lagged behind population increase. During that earlier period, living standards declined sharply as the economy struggled to keep pace with population growth.

Rising income levels signal improvement

The report shows that GDP per capita, a key measure of living standards, increased by 19.5 percent in 2025. This follows a steep decline of about 21 percent recorded between 2020 and 2023.

In dollar terms, Nigeria’s economy grew from $252 billion in 2024 to $307.5 billion in 2025, representing a 22 percent increase. Per capita income also rose to $1,295, reflecting improved economic conditions for the average citizen, although challenges remain.

Nigeria’s share of Sub-Saharan Africa’s total economic output rose to 14.4 percent in 2025, up from around 13 percent the previous year. The country also improved its standing compared to other emerging markets and major African economies.

Additionally, Nigeria’s per capita GDP reached 72 percent of the regional average, compared to 67 percent in 2024. These figures suggest that the country is gradually regaining its economic strength within the region.