The Centre for the Promotion of Personal Enterprise (CPPE) has warned that the price of residing might rise regardless of Nigeria’s GDP development within the third quarter of 2025.
This was contained in its newest coverage transient, signed by CEO, Dr Muda Yusuf, made accessible to BusinessTimes.
Nigeria’s GDP grew by 3.98% YoY in Q3 2025, barely decrease than the 4.3% posted in Q2, however nonetheless reflecting what CPPE described as a sustained consolidation of macroeconomic stability.
Drivers of development
The assume tank attributed the efficiency to improved exchange-rate stability, moderating inflation, stronger fiscal operations and rising investor confidence.
These positive factors, it stated, have supported enterprise actions throughout key sectors, significantly providers, ICT, development and finance.
Nonetheless, CPPE warned that the social affect of reforms stays a major problem.
“Though disinflation is underway and a few meals and manufactured items are easing in value, the cost-of-living disaster continues to weigh closely on households,” the organisation famous, calling for pressing focused interventions to guard weak teams.
Structural reforms
CPPE urged the Federal Authorities to accentuate structural reforms and speed up focused investments to safe stronger, extra inclusive financial development.
The group stated that whereas the economic system is on a “gradual however regular restoration path,” long-standing structural constraints, significantly in agriculture, manufacturing, commerce, and housing, proceed to restrict productiveness, weaken competitiveness and heighten cost-of-living pressures for households.
“With continued reforms, focused investments, and strengthened governance, Nigeria is well-positioned to ship stronger financial outcomes within the months forward,” the CPPE acknowledged.
Sectoral highlights
- Providers Sector: The providers sector remained Nigeria’s major development engine, contributing 53% of whole GDP, pushed by digital adoption, monetary inclusion and improved enterprise sentiment.
- Agriculture: Agriculture recorded 3.79% development, an enchancment on Q2, however nonetheless constrained by insecurity, weak rural logistics, inadequate mechanisation and declining buying energy.
- Manufacturing: Manufacturing grew by only one.25%, one of many weakest sectoral performances, undermined by excessive power and transport prices, costly borrowing, reliance on imported inputs, and smuggling.
- ICT: The ICT sector expanded by 5.78%, sustaining its function as a key non-oil development pillar regardless of a slight decline from the earlier quarter.
- Actual Property: Actual property posted a rare 89% nominal development, pushed by rising property values. However CPPE warns that the development is worsening housing affordability in main cities.
- Monetary Providers: Monetary providers emerged because the fastest-growing sector with 19.63% development, reflecting rising financial exercise, improved fiscal flows and stronger financial-system confidence.
- Commerce: Commerce grew by 1.98%, nonetheless constrained by excessive import prices, weak demand and ongoing import-substitution measures.
Social sectors equivalent to training (2.51%) and well being (2.89%) confirmed restricted progress, which CPPE attributed to persistent underfunding.
Sectors in decline
CPPE says the textile and attire trade remained in recession, contracting by 2.41%, whereas the paper and pulp subsector fell by 1.07%.
The assessment additionally famous slower exercise throughout crude petroleum, cement, transportation, rubber and plastics, and meals and drinks.
In the meantime, accelerated development was noticed in prescription drugs, development, oil refining, leisure, broadcasting, auto meeting and well being providers.
Key coverage imperatives
To maintain development and ease pressures on companies and households, CPPE outlined a number of precedence coverage actions:
- Cut back structural bottlenecks: Enhance electrical energy provide, decrease logistics prices, improve port effectivity and fast-track transport infrastructure.
- Mitigate the cost-of-living disaster: Implement focused social help programmes and tackle sector-specific constraints in agriculture, transportation, power and prescription drugs.
- Strengthen agricultural productiveness: Enhance safety in farming areas, develop irrigation, improve rural roads and help mechanisation.
- Rebuild manufacturing competitiveness: Present concessionary credit score, curb smuggling, cut back import duties on industrial inputs and strengthen provide chains.
- Enhance housing affordability: Reform land administration and deepen the mortgage finance system.
- Enhance training and well being: Improve funding and enhance governance throughout social sectors.
- Improve non-oil exports: Cut back manufacturing prices for exporters and enhance logistics, certification and requirements.
- Stabilise oil output: Enhance safety in oil-producing communities and incentivise investments in upstream and gas-based industries.
What it’s best to know
In Q2 2025, NBS reported that Nigeria’s GDP grew by 4.23% year-on-year in actual phrases within the second quarter of 2025.
This marks a stronger efficiency than the three.48% recorded within the corresponding interval of 2024.
The report exhibits that combination GDP at primary costs stood at N100.73 trillion in nominal phrases, in contrast with N84.48 trillion in Q2 2024, representing a nominal development of 19.23% year-on-year.
