FG Urged to Focus on Agriculture, Manufacturing, Trade, to Translate Growth to Prosperity

Dike Onwuamaeze

The Centre for the Promotion of Private Enterprise (CPPE) has called on the federal government to focus on unlocking productivity in agriculture, manufacturing, construction, real estate and trade in order to translate the current economic growth into jobs, poverty reduction, and shared prosperity.

This call was made by the Chief Executive Officer of CPPE, Dr. Muda Yusuf, in a policy brief on Nigeria’s 2025 second quarter gross domestic product’s (GDP) report.

Yusuf noted in the policy brief that Nigeria’s economy strengthened its recovery momentum in the second quarter of 2025, with real GDP expanding by 4.23 per cent year-on-year, which he described as a notable acceleration from 3.13 per cent in Q1 and a stronger performance compared to 3.48 per cent in Q2 2024.

He said: “Q2 2025 is a clear statement that Nigeria’s economy is moving beyond stabilisation toward a stronger recovery. But to translate this growth into jobs, poverty reduction, and shared prosperity, the focus must shift to unlocking productivity in agriculture, manufacturing, construction, real estate and trade—the sectors that touch the lives of most Nigerians.

“With consistent reform execution, improved governance, and private sector collaboration, Nigeria can transform its present growth momentum into a more resilient, inclusive, and job-rich economy.”

He pointed out that the data confirmed that the economy is not only on a recovery trajectory but is also gaining traction, despite lingering structural and macroeconomic challenges.

Commenting on the performance of the manufacturing sector in the Q2’25 GDP report, Yusuf said that “manufacturing slowed slightly to 1.60 per cent, highlighting the continued pressure of high production costs, logistics inefficiencies, foreign exchange (FX) volatility, and competition from cheaper imports.”

He also said that some sectors, like textile and garments and the motor vehicle assembly, have remained under severe strain and contracted by 1.32 per cent, which continued “a multi-year slump driven by smuggling, energy costs, and infrastructure deficits.

“Motor vehicle assembly reversed its Q1’25 gains to contract 1.5 per cent, reflecting import pressure and weak demand. Sustained policy support, including government procurement of locally assembled vehicles, is essential for revival.”

Yusuf, however, noted that there were bright spots within industry such as oil refining and construction.

He said: “Output jumped from 11.5 per cent to 15.78 per cent, signaling progress in domestic refining capacity and import substitution.

“Growth in the construction moderated to 5.25 per cent, suggesting slower execution of infrastructure projects—likely due to delayed budget implementation and funding bottlenecks.”

He added that the oil and gas sector was the undisputed driver of Q2 growth, recording a dramatic 20.46 per cent expansion, up from just 1.87 per cent in Q1’25.

Yusuf said that this surge is the sector’s best performance in years and reflected three powerful dynamics like policy reforms, NNPC’s governance overhaul and market tailwinds.

He said: “Incentives for deep offshore exploration, gas commercialisation, and investor-friendly regulations are yielding results.

“The leadership reset at NNPC appears to have delivered operational efficiency, improved transparency, and production gains.

“Oil prices held relatively stable, while global demand remained firm—creating a favorable backdrop for Nigerian producers.”

He, however, noted that despite this exceptional growth, the oil sector’s share of GDP remained 4.05 per cent, which underscored the need for Nigeria to rely on non-oil sectors for inclusive and broad-based economic transformation.

He noted that agriculture posted a 2.82 per cent growth rate, which was a significant leap from 0.07 per cent in Q1’25.

“This improvement reflects the impact of government input support programs, better rainfall patterns, and subnational agricultural interventions. However, agriculture still faces serious productivity constraints: poor rural infrastructure, low mechanisation, weak access to finance, and security challenges that disrupt farming activities. Without addressing these, the sector’s potential for food security, employment, and raw material supply will remain under-realised,” he said.  

He added that livestock production grew 1.64 per cent, recovering from a sharp 16.69 per cent contraction in Q1’25, aided by the establishment of a dedicated livestock ministry and targeted support programs.