Nigeria’s Economy Turns a Corner: Growth Returns After Years of Stagnation

Imagine a farmer in Kano who for years saw his income shrink as prices rose and the naira lost value. 

*Before 2024*, the economy grew slower than the population, so each person was effectively poorer year after year. 

That was the old way: weak growth, high inflation, and unstable exchange rates that discouraged investment and made daily life harder for households and businesses.

In 2026, with stronger output and a steadier naira, the same farmer earns more in real terms, businesses restock confidently, and investors return. 

The shift means more jobs, better incomes, and a government with more revenue to spend on roads, schools, and security.

Nigeria’s economy is rebounding strongly according to a new Quartus Economics report titled *Nigeria on the Rise Again*.

The study shows the country has reversed a multi-year decline and is outperforming most African peers.

*Key Highlights*

- *Strongest growth in over a decade*: Real GDP grew a cumulative *8.34% between 2024 and 2025*, outpacing population growth of under 4.4%. 

This contrasts sharply with 2020–2023, when GDP grew only *0.97%* while population rose *8.78%*, cutting per capita income by *21%*.

- *Per capita income rising again*: GDP per capita fell 21% in 2020–23 but increased *19.5% in 2025* to *$1,295*.

- *Dollar GDP back above $300bn*: Nigeria’s dollar GDP jumped *22%* from $252bn in 2024 to * $307.5bn in 2025*. 

The rise reflects *18.43% nominal GDP growth* in naira terms and a *3% naira appreciation*, from N1,479/$ to N1,436/$.

- *Regional outperformance*: 

Nigeria now accounts for *14.4% of Sub-Saharan Africa’s GDP*, up from 13% in 2024, 

Its per capita GDP rose to *72% of the regional average* from 67%. 

It contributed nearly *28% of Africa’s total dollar GDP growth* in 2025.

- *Broader growth drivers*: 

Gains came from agriculture, industry, and services, not just oil. 

Better security in farming areas, improved foreign exchange access, energy reforms, and resilient telecoms and finance sectors all helped. 

Inflation also eased, falling from a peak of *34.8% in Dec 2024 to 15.2% in Dec 2025*.

*Recommendations*

Sustain the momentum by maintaining policy consistency, expanding social safety nets to protect vulnerable households from reform costs like higher fuel and food prices, and accelerating job creation beyond oil. 

Infrastructure investment and security in food-producing regions remain critical for broad-based growth.

*Conclusion*

The data show Nigeria has moved from contraction to expansion, with income and output now growing faster than population.

The reforms of the past two years are restoring stability and confidence. The challenge for 2026 is to make growth more inclusive so the recovery is felt in everyday livelihoods, not just macroeconomic figures. 

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