Nigeria’s economy recorded stronger growth in the first quarter of 2026, as major sectors such as telecommunications, entertainment, transportation, energy, and industrial production posted impressive performances.
According to the latest Gross Domestic Product (GDP) report, the economy expanded by 3.89 per cent in real terms during Q1 2026. This represents an improvement from the 3.13 per cent growth recorded in the same period of 2025, showing that economic activities increased across several industries.
The latest figures suggest that both the services sector and industrial sector contributed heavily to the improved performance. Analysts say the stronger growth reflects rising business activity, increased digital demand, better infrastructure operations, and recovery in transport and refining activities.
One of the standout sectors in the quarter was Nigeria’s creative industry, particularly motion pictures and music production. The sector grew by 8.86 per cent year-on-year in Q1 2026, making it one of the fastest-growing areas of the economy.
Although the growth was slightly lower than the 9.63 per cent recorded in Q1 2025, the industry continued to maintain strong momentum due to increasing global interest in Nigerian entertainment content.
Nigeria’s music and film industries have continued to attract international attention through Afrobeats music, Nollywood movies, streaming platforms, and foreign licensing deals. These factors have helped generate more revenue for producers, artists, and distributors.
A breakdown of the sector’s performance in 2025 showed fluctuating growth throughout the year. Motion pictures and music production recorded 9.63 per cent growth in the first quarter of 2025 before slowing to 4.07 per cent in the second quarter. Growth later improved to 5.13 per cent in the third quarter before declining again to 3.60 per cent in the final quarter of the year.
Overall, the sector averaged 5.86 per cent growth in 2025, highlighting its continued importance to Nigeria’s economy despite changing market conditions.
The telecommunications industry also remained a major contributor to economic growth during the quarter. Increased internet usage, rising smartphone penetration, digital banking activities, and stronger demand for data services supported expansion in the sector.
Similarly, transportation and logistics activities improved as businesses increased movement of goods and services across the country. Recovery in infrastructure projects and improved operational activities in parts of the economy also supported growth.
The insurance sector equally recorded stronger performance during the period as more businesses and individuals embraced financial protection products. Industry experts believe improved awareness and expansion of digital insurance services contributed to the sector’s growth.
Economic observers say the Q1 2026 performance may signal improving confidence in the economy, especially as non-oil sectors continue to expand and reduce dependence on crude oil revenue.
Despite the positive outlook, analysts also noted that challenges such as inflation, exchange rate pressure, high production costs, and insecurity could still affect growth if not properly managed.
However, the stronger first-quarter figures have raised optimism that Nigeria could maintain a steady economic recovery path in 2026 if current momentum across key sectors continues.
