Paragraph 1: Positive Economic Growth Validates Tinubu’s Reforms
Nigeria’s economy experienced robust growth in the second quarter of 2025, with the Gross Domestic Product (GDP) expanding by 4.23%. This positive development, as reported by the National Bureau of Statistics (NBS), underscores the effectiveness of President Bola Tinubu’s reform programs, according to the presidential spokesperson, Sunday Dare. The growth figure surpasses the 3.48% recorded in the second quarter of 2024 and the 3.13% posted in the first quarter of 2025, signaling a strengthening economic trajectory. Dare emphasized that the NBS data validates the viability of the reforms implemented across various sectors under President Tinubu’s leadership. This growth is seen as an early indication that the administration’s policy measures are beginning to yield positive results.
Paragraph 2: Strong Performance Across Key Sectors Drives Growth
The NBS report attributed the impressive GDP growth to a combination of factors, including improved performance in key sectors such as industry, agriculture, and services. The industrial sector, often a barometer of economic health, experienced a significant upswing, contributing substantially to the overall GDP expansion. The agricultural sector, a crucial component of the Nigerian economy, also maintained positive momentum, further bolstering growth. Furthermore, the services sector, which encompasses a wide range of economic activities, demonstrated resilience and contributed to the positive economic performance. This broad-based growth across multiple sectors suggests a healthy and diversified economy.
Paragraph 3: GDP Rebasing and its Impact on Debt-to-GDP Ratio
The recent rebasing of Nigeria’s GDP played a significant role in the improved economic figures. The rebasing exercise, which updated the base year from 2010 to 2019, significantly broadened the scope of economic measurement. This included incorporating previously underrepresented or uncaptured sectors like the digital economy, creative industries, fintech, and informal activities. The inclusion of these dynamic sectors provided a more accurate and comprehensive picture of the Nigerian economy’s true size and activities. As a result, the nominal GDP increased substantially, leading to an improved debt-to-GDP ratio, a key indicator of a country’s debt sustainability.
Paragraph 4: Reduced Debt-to-GDP Ratio Enhances Economic Stability
The rebasing exercise resulted in a lower debt-to-GDP ratio, dropping to 39.4% in the first quarter of 2025. This positive development signifies improved debt sustainability for Nigeria. A lower debt-to-GDP ratio indicates that a country is better positioned to manage its debt burden relative to the size of its economy. This enhanced debt sustainability can have positive implications for investor confidence and access to international financial markets. The reduced ratio can also free up more government resources for investment in critical sectors like infrastructure, education, and healthcare, contributing to long-term economic growth and development.
Paragraph 5: Breakdown of Nigeria’s Public Debt
As of March 31, 2025, Nigeria’s total public debt stood at N149.39 trillion. This debt is composed of both domestic and external borrowings. Domestic debt, which represents borrowings from within the country, amounted to N78.76 trillion. External debt, which comprises borrowings from international sources, totaled N70.63 trillion. Understanding the composition of public debt is essential for effective debt management. A balanced approach to managing both domestic and external debt is crucial for maintaining fiscal stability and avoiding overreliance on any single source of borrowing.
Paragraph 6: Tinubu’s Reforms and Future Economic Outlook
The positive economic growth in the second quarter of 2025, coupled with the improved debt-to-GDP ratio, suggests that President Tinubu’s reform agenda is beginning to bear fruit. While challenges remain, the current economic trajectory indicates a promising outlook for Nigeria. The government’s focus on diversifying the economy, strengthening key sectors, and improving debt sustainability is expected to contribute to continued economic progress. However, sustained efforts are required to address persistent economic challenges such as unemployment, inflation, and infrastructure deficits. The successful implementation of further reforms will be crucial for achieving long-term economic stability, sustainable growth, and improved living standards for Nigerians.
