Nigerian economy expands by 3.89 percent in first quarter of 2026

Nigeria's Gross Domestic Product (GDP) experienced a significant boost, rising to 3.89 per cent in the first quarter of 2026, Q1'26, which marks a 0.76 percentage point increase from the 3.13 per cent recorded in the same period of 2025, Q1'25.

n

Notably, the GDP growth in Q1'26 represents a 0.18 percentage points decline from the 4.07 per cent recorded in the fourth quarter of 2025, Q4'25, indicating a slight slowdown in economic growth.

n

According to the National Bureau of Statistics, NBS, the GDP grew by 3.89% (year-on-year) in real terms in the first quarter of 2026, surpassing the 3.13% recorded in the first quarter of 2025.

n

The agriculture sector saw a notable improvement, growing by 3.15% in the first quarter of 2026, a significant increase from the 0.07% recorded in the corresponding quarter of 2025.

n

The industry sector also experienced growth, with a 3.50% increase in the first quarter of 2026, up from 3.42% in the first quarter of 2025, while the services sector recorded a growth of 4.31%.

n

The services sector's growth, however, was slightly lower than the 4.33% recorded in the same quarter of 2025, indicating a minor decline in the sector's performance.

n

In terms of GDP share, the services sector contributed 57.73% to the aggregate GDP in the first quarter of 2026, a slight increase from the 57.50% recorded in the corresponding quarter of 2025.

n

The NBS further noted that the services sector's contribution to the aggregate GDP was 57.73 percent during the quarter under review.

n

The real growth of the oil sector was 2.57% (year-on-year) in Q1 2026, indicating a 0.70% points increase relative to the rate recorded in the corresponding quarter of 2025, which was 1.87%.

n

However, the oil sector's growth decreased by 4.22% points when compared to Q4 2025, which was 6.79%, highlighting a significant decline in the sector's performance.

n

The oil sector recorded a growth rate of 9.31% on a quarter-on-quarter basis in Q1 2026, a notable increase from the previous quarter.

n

The Oil sector's contribution to the total real GDP in Q1 2026 was 3.92%, down from the 3.97% recorded in the corresponding period of 2025, but up from the 2.87% recorded in the preceding quarter.

n

The non-oil sector grew by 3.94% in real terms during the reference quarter, Q1 2026, which was higher by 0.75% points compared to the rate recorded in the same quarter of 2025.

n

The non-oil sector's growth rate was lower than the 3.99% recorded in the fourth quarter of 2025, indicating a slight decline in the sector's performance.

n

In real terms, the non-oil sector contributed 96.08% to the nation's GDP in the first quarter of 2026, which was higher than the share recorded in the first quarter of 2025, but lower than the fourth quarter of 2025.