Nigeria’s oil sector recorded a strong double-digit growth of 20.46% in the second quarter of 2025, outperforming the non-oil sector and marking its highest quarterly expansion in years, according to the National Bureau of Statistics (NBS).
The latest Gross Domestic Product (GDP) report released on Monday by the NBS shows that the oil sector grew by 10.38 percentage points compared to the 10.08% growth seen in Q2 of 2024.
The Bureau linked the significant increase to its recent GDP rebasing, which officially took effect in July 2025, updating the base year for economic calculations from 2010 to 2019. This change has adjusted how growth is measured and has reshaped key sector contributions to the national economy.
“On a quarter-on-quarter basis, the oil sector recorded a growth rate of 6.01% in Q2 2025,” the report stated.
Compared to earlier quarters, the oil sector’s performance showed a remarkable rebound:
- Q1 2025: 1.87% growth
- Q3 2024: 5.66%
- Q4 2024: 2.08%
The Q2 2025 growth of 20.46% represents a massive 18.59 percentage point jump from Q1 alone.
Additionally, the oil sector’s contribution to real GDP increased to 4.05% in Q2 2025, up from:
- 3.51% in Q2 2024
- 3.97% in Q1 2025
The figures suggest that oil production levels and global pricing may have played a role in boosting revenues and output in the quarter.
Understanding the GDP Rebasing
The NBS explained that GDP rebasing involves updating the methods and base year used to measure economic activity, to reflect structural changes and new economic realities. By selecting 2019 as the new base year, the Bureau has aligned its data with more recent consumption, investment, and production patterns across sectors.
Rebasing often alters year-on-year comparisons, making previous trends appear less or more significant based on updated weights and sectoral contributions.
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