Nigeria’s economy expanded by 3.89 per cent in real terms in the first quarter of 2026, marking an improvement from the 3.13 per cent growth recorded in the corresponding period of 2025, the National Bureau of Statistics has announced.
According to the latest Gross Domestic Product report released by the bureau, the stronger performance was driven largely by growth in agriculture, telecommunications, finance, construction and trade activities, reinforcing signs of gradual economic recovery despite persistent challenges in the oil and power sectors.
The report showed that the services sector remained the dominant contributor to the economy, accounting for 57.73 per cent of total GDP in Q1 2026, slightly higher than the 57.50 per cent recorded in the same quarter last year.
Agriculture contributed 23.16 per cent to total GDP, while the oil sector accounted for 3.92 per cent during the period under review.
In nominal terms, Nigeria’s aggregate GDP rose to ₦110.79 trillion in the first quarter of 2026, representing a 17.79 per cent increase from the ₦94.05 trillion posted in Q1 2025.
The NBS noted that the non-oil sector remained the major driver of economic growth, expanding by 3.94 per cent in real terms compared to 3.19 per cent in the corresponding quarter of last year.
The bureau attributed the improved performance largely to stronger output in telecommunications, crop production, trade, cement manufacturing, financial services, real estate, construction and road transport.
According to the report, the non-oil sector contributed 96.08 per cent to total GDP in Q1 2026, slightly above the 96.03 per cent contribution recorded in the same period of 2025.
Despite the broader economic expansion, Nigeria’s crude oil production declined during the quarter. Average daily crude oil output stood at 1.55 million barrels per day, down from 1.62 million barrels per day in Q1 2025 and 1.58 million barrels per day recorded in the previous quarter.
However, the oil sector still posted a year-on-year real growth rate of 2.57 per cent, improving from the 1.87 per cent growth recorded in the first quarter of 2025.
Sectoral analysis released by the statistics agency revealed mixed performances across major segments of the economy.
The agriculture sector recorded real growth of 3.15 per cent, a sharp rise from the marginal 0.07 per cent growth posted in the corresponding period last year, with crop production remaining the backbone of the sector.
Manufacturing activity also improved, expanding by 3.29 per cent in real terms compared to 1.69 per cent in Q1 2025.
The information and communication sector emerged as one of the strongest-performing sectors during the quarter, recording a real growth rate of 10.98 per cent while contributing 11.31 per cent to total GDP.
Telecommunications and information services were identified as the primary drivers behind the sector’s robust expansion.
Similarly, the finance and insurance sector grew by 8.54 per cent in real terms, while the construction sector recorded 6.38 per cent year-on-year growth.
Trade maintained its position as the largest contributor to GDP with a 17.89 per cent share, although the sector posted relatively modest real growth of 2.08 per cent during the quarter.
On the downside, the electricity, gas, steam and air conditioning supply sector contracted sharply by 15.30 per cent in real terms, underscoring ongoing structural challenges in Nigeria’s power sector.
