Nigeria’s GDP growth rises to 3.89% in Q1 2026

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By Boluwatife Oshadiya | May 26, 2026

KEY POINTS

• Nigeria’s real GDP grows by 3.89% year-on-year in Q1 2026, up from 3.13% in Q1 2025
• Non-oil sector expands 3.94% and accounts for 96.08% of total economic output
• Nominal GDP rises 17.79% to ₦110.79 trillion, driven by services and trade

MAIN STORY

Nigeria’s economy recorded stronger growth in the first quarter of 2026, with real Gross Domestic Product (GDP) expanding by 3.89% year-on-year, according to data released by the National Bureau of Statistics (NBS) in its Quarterly National Accounts report published in May 2026.

The figure marks an improvement from 3.13% recorded in the same period in 2025, reflecting a broad-based recovery across key sectors of the economy. Nominal GDP at basic prices stood at ₦110.79 trillion, representing a 17.79% increase from ₦94.05 trillion in Q1 2025.

Services remained the dominant driver of economic activity, contributing 57.73% to real GDP, followed by agriculture at 23.16% and industry at 19.11%. On the expenditure side, trade, crop production, real estate, and telecommunications were among the top ten contributors to overall output.

The oil sector posted marginal improvement in output growth, expanding by 2.57% year-on-year, despite a decline in average daily production to 1.55 million barrels per day from 1.62 million barrels per day in Q1 2025. Its share of real GDP, however, eased slightly to 3.92%.

In contrast, the non-oil sector continued to dominate the economy, growing by 3.94% and accounting for 96.08% of total real GDP. Key growth drivers included telecommunications, crop production, financial services, construction, and trade activities.

Agriculture recorded a rebound in performance, growing by 3.15% compared to 0.07% in Q1 2025, while construction expanded by 6.38%. Manufacturing also posted steady growth of 3.29%, indicating sustained industrial activity despite macroeconomic pressures.

Electricity, gas, steam, and air conditioning supply remained a weak point, contracting by 15.30%, highlighting ongoing structural challenges in Nigeria’s energy distribution chain.

WHAT’S BEING SAID

The National Bureau of Statistics said the figures reflect updated rebased quarterly estimates designed to improve the accuracy and timeliness of economic measurement across sectors.

There were no immediate public reactions from fiscal authorities or private sector groups at the time of publication.

WHAT’S NEXT

• The NBS is expected to release the Q2 2026 GDP report later in the year as part of its quarterly publication cycle
• Policymakers are likely to assess sectoral performance trends ahead of medium-term budget planning
• Attention will also shift to inflation, exchange rate stability, and energy sector reforms as key macroeconomic indicators influencing Q2 performance

BOTTOM LINE

The Bottom Line: Nigeria’s latest GDP data signals a steady, services-led expansion with non-oil activity firmly anchoring growth, but persistent weakness in the energy sector continues to expose structural bottlenecks that could limit long-term productivity gains if unaddressed.