Nigeria’s transport sector growth slows to 9.87% in Q3

Nigeria’s transport sector growth slowed to 9.87 percent in the third quarter of 2025 as infrastructural bottlenecks continues to weigh industry performance.

The sector’s growth declined by 0.23 percent year-on-year to 9.87 percent in the quarter of 2025 from 10.10 percent in the corresponding quarter of 2024, according to data from the National Bureau of Statistics (NBS).

“In real terms, the transportation and storage sector grew by 9.87 percent in Q3 2025. This rate represents a decrease of 0.23 percent points compared to the same quarter of the previous year and a decrease of 12.22 percent points relative to the preceding quarter,” said the report.

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The sector’s contribution to real GDP in Q3 of 2025 was 0.69 percent, higher than the 0.65 percent recorded in the preceding year and higher than 0.65 percent recorded in the second quarter of 2025.

Nigeria’s transport and storage sector struggles with infrastructure deficits such as bad roads, congested ports, outdated rail, severe traffic congestion, high costs, regulatory hurdles, and security issues, leading to delays, damaged goods, and stifled trade, with a major need for better funding, policy reform, and modern, integrated logistics solutions.

The sector is made up of six activities, including road, rail, pipelines, water, and air transportation, with post and courier services.

The sector grew by 24.35 percent in nominal terms in the third quarter of 2025 (year-on-year), which was lower relative to the 37.53 percent recorded in the corresponding quarter of 2024 and higher than 13.67 percent in the previous quarter.

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Four of the six sub-activities under the industry recorded positive growth rates in the third quarter of 2025, with a quarter-on-quarter growth rate of 56.11 percent.

Transport activities contributed 0.96 percent to nominal GDP in Q3 2025, an increase from the 0.92 percent recorded in the corresponding period of 2024, and higher than the 0.70 percent recorded in the second quarter of 2025.

Juliet Onyema is a transport journalist who reports on Nigeria’s transport and automobile industry. She covers emerging Electric Vehicles (EVs), ranging from adoption to usage, automobile firms and transport policies which affect them, and also recurring trends affecting commuters’ mobility interstate and intrastate.

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