Top Ten Fastest-Growing Sectors in Nigeria, Q1 2025
The National Bureau of Statistics has revealed that Nigeria’s Gross Domestic Product (GDP) grew by 3.13% year-on-year in real terms in the first quarter of 2025.
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According to the Bureau, this represented an improvement over the 2.27% growth recorded in the corresponding period of 2024.
Legit.ng's analysis of the GDP data shows that between the first quarter of 2024 and the first quarter of 2025, Nigeria’s economy experienced shifts across several key sectors.
Based on data from five quarters (Q1 2024 to Q1 2025), here is an insight into the fastest-growing sectors in Nigeria out of the 46 sectors captured in the report.
Source: Getty Images
These sectors have been evaluated based on their real GDP growth rates
Rail transport and pipelines
Rail transport and pipelines recorded the strongest average growth of 43.99%. The sector peaked at 68.73% in Q1 2024 and, despite slowing to 19.68% in Q3, regained momentum to grow by 42.58% in Q4 and 28.95% in Q1 2025.
The improved performance implies that rail transport is more sought of and activities around the sector boost the economy.
Metal ores
Metal ores followed closely with an average growth rate of 51.65%. The sector posted its highest growth in Q1 2024 at 113.72%, then slowed to 22.35% in Q3 and 25.20% in Q1 2025.
This sector, which includes mining of iron ore, gold, and other solid minerals is in demand globally.
Electricity, gas, steam and air conditioning supply
This sector averaged 4.89% growth over five quarters. It began modestly at 2.49% in Q1 2024, dipped into negative territory at -7.97% in Q4, then surged to 18.65% in Q1 2025.
Road transport
Road transport averaged 10.85% growth. After contracting by -13.95% in Q2 2024, it bounced back with 14.68% growth in Q3, 16.84% in Q4, and 18.46% in Q1 2025.
The recovery was supported by increased demand for intra-city and intercity travel, a rise in e-commerce logistics, and steady activity in ride-hailing services.
Financial institutions
The financial services sector showed an average growth rate of 5.12%, starting slowly at just 1.69% in Q1 2024. Momentum built steadily, reaching 15.91% in Q1 2025.
The increase is attributed to digital banking expansion, strong credit growth, and fintech innovation.
Oil refining
Despite starting off weakly, with -27.87% in Q1 and -32.72% in Q2 2024, oil refining turned a corner in the last two quarters. It grew 9.36% in Q4 2024 and 11.51% in Q1 2025, giving it a five-quarter average of -14.22%.
The rebound is tied to private sector-led refineries, including modular refineries beginning operations and local refining capacities improving.
Source: Getty Images
Motion pictures, sound recording and music production
This creative sub-sector grew at an average rate of 4.36%, with growth peaking at 9.63% in Q1 2025. The sector recorded consistent but moderate performance throughout, ranging between 0.95% and 5.25% in earlier quarters.
Streaming platforms and increased local content investment played a role in supporting this growth.
Arts, entertainment and recreation
This broader entertainment category averaged 8.49% growth. It began strongly with 10.74% in Q1 2024 and maintained consistent growth, reaching 9.63% again in Q1 2025.
Water supply, sewerage, waste management and remediation services
This essential services category delivered steady performance, averaging 8.83% over the period. Growth was strongest in Q3 2024 at 10.33%, with every quarter maintaining above 6% growth.
Telecommunications
Telecoms posted an average growth rate of 6.52%, showing gradual improvement quarter by quarter. Starting at 4.04% in Q1 2024, it rose to 7.82% in Q1 2025.
CBN explains decision to hold interest rate
Earlier, Legit.ng reported that the Central Bank of Nigeria's Monetary Policy Committee (MPC) has decided to retain the Monetary Policy Rate (MPR), the benchmark for interest rates, at 27.50%.
The new rate is the same rate the MPC has stood since September 2024.
An explanation has been provided on the decision by the CBN's MPC.
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Source: Legit.ng
