Nigeria’s economy recorded a 3.89 per cent growth in the first quarter of 2026, according to new figures released by the National Bureau of Statistics. The latest report showed that the country’s economic expansion was mainly supported by strong performances in telecommunications, finance, agriculture, trade, construction, and other non-oil sectors.
The growth marks an improvement from the 3.13 per cent recorded during the same period in 2025, showing that economic activities have continued to recover despite several national challenges.
According to the report, the services sector remained the largest contributor to Nigeria’s economy, accounting for 57.73 per cent of the country’s Gross Domestic Product (GDP). The non-oil sector also maintained its dominance, contributing over 96 per cent of total GDP, while the oil sector contributed less than 4 per cent.
One of the strongest drivers of growth was the Information and Communication sector, especially telecommunications and digital services. The sector expanded by nearly 11 per cent in the first quarter of the year, highlighting the increasing importance of technology and digital businesses to Nigeria’s economy.
Financial services also recorded strong growth during the period. Banks, insurance companies, fintech firms, and other financial institutions helped strengthen economic activities as the sector continued to expand rapidly.
Agriculture showed signs of recovery after weak performance in previous periods. The sector grew by 3.15 per cent compared to almost flat growth recorded last year. Analysts believe this improvement is important because agriculture remains a major source of food supply and employment for millions of Nigerians.
Trade activities also improved slightly as businesses adjusted to changing economic conditions and exchange rate stability.
Despite the positive figures, the oil sector continued to face challenges. Nigeria’s average daily crude oil production dropped to 1.55 million barrels per day, lower than the 1.62 million barrels recorded in the same period last year. Although the oil sector still recorded growth, experts said the decline in production remains a concern because Nigeria still depends heavily on oil revenue and foreign exchange earnings.
The manufacturing sector also recorded slower growth compared to previous years. Rising energy costs, high interest rates, poor electricity supply, and inflation continue to affect manufacturers and business owners across the country.
Economic analysts said the latest GDP figures show that Nigeria’s economy is gradually becoming more dependent on services and technology rather than oil production. However, many experts warned that the current growth rate is still too low to significantly reduce poverty, unemployment, and rising living costs.
Development economist Justin Amase said insecurity in farming communities continues to affect food production and worsen food inflation across the country. He explained that attacks on farmers and high transportation costs remain major problems for the agricultural sector.
Economics professor Hassan Ebhozele Oaikhenan also noted that Nigeria still faces structural weaknesses, including high business costs, weak infrastructure, and poor electricity supply.
Meanwhile, Ayokunle Olubunmi of Agusto & Co said Nigeria needs economic growth of at least 5 to 6 per cent yearly to create meaningful improvements in living standards.
He added that recent government reforms, including subsidy removal, may help improve public finances but have increased financial pressure on ordinary Nigerians.
Also commenting, Muda Yusuf described the latest GDP performance as encouraging, especially considering the slow pace of economic activities usually experienced during the first quarter of the year.
Analysts believe Nigeria’s economy may continue to improve if inflation slows down, investments increase, and reforms are properly implemented. However, they stressed that addressing insecurity, electricity shortages, inflation, and weak oil production will remain critical for sustainable long-term growth.
