Why Nigeria’s 3.98% GDP growth rate hasn’t impacted on living cost – Economists
The National Bureau of Statistics data onThe National Bureau of Statistics data on Monday showed that the non-oil sector, such as agriculture and service sectors, pushed Africa’s most populous country to consecutive growth.
Nigeria’s national GDP rose to N113.59 trillion in nominal terms, while real GDP was recorded at N57.03 trillion in the third quarter of 2025. Monday showed that the non-oil sector, such as agriculture and service sectors, pushed Africa’s most populous country to consecutive growth.
NBS data indicated that the agriculture sector expanded by 3.79 percent, an improvement from the 2.55 percent recorded in Q3 2024.
However, the services sector remained the country’s economic engine driver, contributing 53.02 percent of total output, followed by agriculture at 31.21 percent.
Information communications technology, financial services, real estate, and trade were among the standout performers in the Q3 GDP data.
While macroeconomic gains are laudable, micro has continued to suffer as economists point to a disconnect between macro- and microeconomic levels.
According to economists and financial analysts, the weak transmission mechanism is why the cost of living has remained elevated for the majority of Nigerians.
In a separate interview with SOCIETY WATCH on Monday, the Executive Officer of SD & D Capital Management, Gbolade Idakolo, a renowned economist and former president and chairman of the Council of the Chartered Institute of Bankers, Prof. Segun Ajibola, a former president of CIBN, Mazi Okechukwu Unegbu, and university don, Prof. Godwin Oyedokun revealed a major problem with Nigeria’s GDP growth rate.
Living standards have yet to reduce despite GDP growth rate – Prof. Ajibola
Prof. Ajibola described Nigeria’s steady GDP growth as “encouraging,” especially with increased contributions from real-sector activities such as agriculture.
He noted that agricultural output typically rises during the harvest season, boosting the sector’s overall performance. According to him, food prices have dropped in recent months, but high transportation, energy, and storage costs and persistent security challenges continue to keep the overall cost of living elevated.
He, however, cautioned that while the improved GDP growth rate signals a measure of macroeconomic stability, it does not automatically translate to better living conditions for ordinary Nigerians.
He stressed that Nigeria’s “weak transmission mechanisms” between macroeconomic gains and household welfare remain a major barrier.
According to him, “It will take a combination of monetary, fiscal, and political efforts to strengthen the links between the nominal and real segments of the economy for the benefits of growth to cascade down to the mass of the people.”
