Nigeria’s economy recorded stronger growth in the first quarter of 2026, with new data from the National Bureau of Statistics (NBS) showing signs of gradual recovery across major sectors despite ongoing economic pressures.
According to the latest GDP report released by the NBS, Nigeria’s real Gross Domestic Product (GDP) grew by 3.89 percent year-on-year in Q1 2026, improving from the 3.13 percent growth recorded during the same period in 2025.
The report revealed that agriculture emerged as one of the biggest drivers of the economy during the quarter, posting a major rebound after struggling in previous periods.
Agricultural growth rose sharply to 3.15 percent in Q1 2026 compared to just 0.07 percent recorded in the first quarter of 2025.
The industry sector also showed moderate improvement, growing by 3.50 percent, while the services sector maintained strong performance with a 4.31 percent growth rate.
The services sector remained the largest contributor to Nigeria’s economy, accounting for 57.73 percent of the country’s total GDP during the period under review.
In nominal terms, Nigeria’s GDP stood at over ₦110.7 trillion in Q1 2026, representing a 17.79 percent increase compared to ₦94 trillion recorded in the same quarter of 2025.
Despite the overall economic growth, Nigeria’s oil production recorded a slight decline.
The country produced an average of 1.55 million barrels of crude oil per day in Q1 2026, lower than the 1.62 million barrels per day recorded during the same period last year.
However, the oil sector still recorded a year-on-year real growth of 2.57 percent, slightly higher than the 1.87 percent growth posted in Q1 2025.
The oil sector contributed 3.92 percent to Nigeria’s total real GDP during the quarter.
Meanwhile, the non-oil sector continued to dominate the economy, contributing over 96 percent of total GDP growth.
According to the NBS, the non-oil sector grew by 3.94 percent in real terms, driven mainly by telecommunications, crop production, trade, cement manufacturing, financial services, construction, real estate and road transportation.
The report highlighted telecommunications and agriculture as some of the strongest-performing sectors helping to sustain economic growth amid ongoing reforms and inflationary pressures.
The Mining and Quarrying sector also recorded improvements, with crude oil and natural gas activities contributing significantly to sectoral growth.
Economic analysts say the latest GDP figures may offer some relief to the Federal Government amid rising concerns over inflation, unemployment and the cost of living across the country.
However, many Nigerians continue to grapple with high food prices, rising transport costs and economic hardship despite the reported growth figures.
The Tinubu administration has consistently defended its economic reforms, including fuel subsidy removal and exchange rate unification, arguing that the policies are necessary to stabilise Nigeria’s economy and attract long-term investment.
Source: National Bureau of Statistics (NBS)
