Top 10 fastest growing sectors in Nigeria in Q2 2025  

Nigeria’s economy accelerated to 4.23% year-on-year growth in Q2 2025, beating the 3.13% recorded in Q1 and 3.48% in Q2 2024, according to National Bureau of Statistics (NBS) data.

The rebound was powered by surging performance in coal mining, quarrying, and rail transport, signaling renewed investment and infrastructure gains across key industries.

Coal mining led the pack, soaring 57.53% after four quarters of contraction, driven by revived power-sector demand, mine rehabilitation, and energy diversification investments. Rising global prices and domestic energy shortages pushed manufacturers to increase local coal usage, especially for industrial boilers and backup generation.

The non-oil economy expanded by 3.64% in Q2 2025, improving by 0.45 percentage points from 3.19% in Q1, highlighting strengthening domestic demand and broader economic recovery outside the petroleum sector.

The Q2 2025 GDP results underscore a broad-based economic rebound driven by extractive industries, energy, and transport services. Also, spillovers from Q1 reforms—like tariff adjustments, infrastructure spending, and security improvements—continued to strengthen growth.

Below are the fastest growing sectors of the economy as of second quarter of 2025.

The 10 fastest growing sectors of Q2 2025 

Electricity, Gas, Steam & Air Conditioning Supply – 11.47% Growth

Despite moderating from Q1’s 18.65% expansion, the power sector maintained its recovery following Q4 2024’s contraction. Grid stability strengthened, with no system disturbances reported through Q1–Q2.

According to the Nigerian Electricity Regulatory Commission (NERC), average available generation capacity across grid-connected plants rose by 69.99 MW (+1.32%), climbing from 5,296.89 MW in Q4 2024 to 5,366.88 MW in Q1 2025.

Fifteen plants recorded higher output levels during the period. April’s tariff adjustments and subsidy reforms bolstered sector finances, while industrial hubs with heavy demand saw the most significant reliability improvements.

Insurance – 15.70% Growth

Insurance nearly doubled its Q1 pace, benefiting from rising risk awareness, digital policy distribution, and stricter enforcement of compulsory insurance classes. Corporate clients in energy, logistics, and construction expanded coverage. The new Insurance Act, signed in Q2, attracted fresh investment and lifted sector confidence.

Oil Refining – 15.78% Growth

Oil Refining sustained its recovery, climbing from 11.51% in Q1. Modular refineries added incremental capacity, while pre-commissioning activities at the Dangote Refinery boosted local supply. Reduced reliance on imports improved refining margins and foreign-exchange savings.

Financial Institutions – 16.18% Growth

Financial Institutions continued steady momentum, up slightly from Q1’s 15.91%. Elevated interest rates bolstered banks’ interest income, while fintech adoption expanded credit and payment services. Recapitalization programs improved balance sheets, and tighter regulation increased investor confidence.

Crude Petroleum & Natural Gas – 20.46% Growth

Nigeria’s largest export earner surged after a sluggish start to the year. Growth jumped from 1.87% in Q1 to 20.46% in Q2, thanks to improved security in the Niger Delta, partial resolution of pipeline vandalism, and higher OPEC production quotas. Stabilizing global oil prices and increased natural gas supply for power generation further supported output.

Road Transport – 24.50% Growth

Road Transport maintained an upward trajectory, climbing from 18.46% in Q1. The sector benefited from e-commerce logistics, food distribution, and manufacturing supply chains. Federal road rehabilitation projects improved transit efficiency, while growing urban populations kept passenger transport robust.

Water Transport – 27.90% Growth

Water Transport rebounded sharply after subdued growth in previous quarters. Increased cargo volumes through Apapa and Onne ports, improved navigability of inland waterways, and private-sector investments in barges and ferries drove performance. Easing foreign-exchange constraints also boosted maritime trade activity.

Rail Transport & Pipelines – 43.08% Growth

Rail and pipeline services posted 43.08% growth, up from 28.95% in Q1 2025. Public–private investments in freight rail corridors and pipeline rehabilitation continued to pay off. Government incentives to decongest highways are shifting bulk cargo from road to rail. Upgrades on the Lagos–Ibadan rail line and pipeline infrastructure in oil-producing regions were key contributors.

Quarrying & Other Minerals – 45.86% Growth

After four straight quarters of declines—including -21.55% in Q1—Quarrying & Other Minerals rebounded strongly. Construction and infrastructure projects that had been delayed by financing gaps and policy uncertainty were revived. Rising demand for granite, limestone, and aggregates from accelerated federal and state road and housing developments fueled the surge.

Coal Mining – 57.53% Growth (Q2 2025)

Coal Mining was the fastest-growing sector in Q2, reversing a steep -22.28% contraction in Q1. The turnaround reflects renewed power-sector demand, rehabilitation of dormant mines, and fresh investment tied to Nigeria’s energy diversification goals. Global coal prices remained firm during April–June, encouraging industrial users to source locally. Domestic energy shortages also increased coal use for industrial boilers and backup generation.