Nigeria’s economy expanded by 3.89 percent in the first quarter of 2026, showing stronger performance compared to the 3.13 percent growth recorded during the same period in 2025.
The new figures were released by the National Bureau of Statistics as part of its latest Gross Domestic Product (GDP) report. The report highlighted improved activities across agriculture, industry and services, which helped support the country’s economic growth at the start of the year.
According to the data, Nigeria’s GDP at basic prices rose to N110.79 trillion in Q1 2026, up from N94.05 trillion recorded in Q1 2025. This represents a nominal growth of 17.79 percent year-on-year.
The report showed that the non-oil sector remained the major driver of the economy despite moderate growth in the oil sector. Non-oil activities accounted for over 96 percent of total real GDP during the quarter.
The services sector maintained its position as the largest contributor to economic output. It contributed 57.73 percent to GDP and recorded a real growth of 4.31 percent compared to the same period last year.
Agriculture also posted a major recovery. The sector grew by 3.15 percent in real terms, a sharp improvement from the 0.07 percent growth recorded in Q1 2025. Increased crop production and improved farming activities were identified as key contributors to the rebound.
Several sectors played important roles in driving growth during the quarter. These included telecommunications, trade, financial services, construction, transportation, cement manufacturing and real estate.
The oil sector recorded moderate growth even though crude oil production declined during the period. Average crude oil production dropped to 1.55 million barrels per day in Q1 2026, lower than the 1.62 million barrels per day recorded in the same quarter of 2025.
Despite the decline in production, the oil sector grew by 2.57 percent in real terms, compared to 1.87 percent growth recorded a year earlier. However, the sector’s contribution to total GDP slightly declined to 3.92 percent from 3.97 percent in Q1 2025.
Nigeria’s industrial sector also maintained stable growth during the quarter. The sector expanded by 3.50 percent, slightly higher than the 3.42 percent growth recorded in the corresponding period last year.
Construction activities recorded one of the strongest performances in the report, growing by 6.38 percent in real terms. Manufacturing also showed positive momentum with nominal growth of 10.22 percent.
The latest GDP performance follows the 4.07 percent growth recorded in the fourth quarter of 2025, suggesting that the economy has continued on a gradual recovery path.
International financial institutions have also expressed confidence in Nigeria’s economic outlook. The World Bank recently upgraded Nigeria’s 2026 growth projection to 4.4 percent from an earlier estimate of 3.7 percent. The institution also maintained its 2027 forecast for the country at 4.4 percent.
In addition, S&P Global Ratings upgraded Nigeria’s long-term foreign and local currency credit ratings to “B” from “B-”, while retaining a stable outlook on the economy.
Economists believe that continued reforms, stronger non-oil performance and improved investor confidence could further support economic growth in the coming quarters.
