Nigeria’s economy grew by 3.89% year-on-year in the first quarter of 2026, up from 3.13% in Q1 2025, according to data released by the National Bureau of Statistics (NBS).
In nominal terms, GDP at basic prices rose to N110.79 trillion, compared with N94.05 trillion in the same period last year, representing a 17.79% increase.
Services Sector Remains Main Growth Driver
The services sector continued to anchor economic activity, accounting for 57.73% of GDP and expanding by 4.31% year-on-year.
Growth was driven by telecommunications, financial services, trade, transportation, and real estate, reinforcing services as the dominant engine of Nigeria’s economy.
Agriculture and Industry Post Broad-Based Gains
Agriculture recorded a strong rebound, growing 3.15%, compared with 0.07% in Q1 2025, supported by improved crop production.
The industrial sector expanded 3.50%, with construction growing 6.38% and manufacturing recording 10.22% nominal growth, indicating steady underlying production activity.
Oil Sector Growth Despite Lower Output
The oil sector grew 2.57% despite a decline in average production to 1.55 million barrels per day, down from 1.62 million barrels per day in Q1 2025.
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Its contribution to the Q1 Nigeria GDP fell slightly to 3.92%, compared with 3.97% a year earlier, reflecting its reduced structural weight in the economy.
Global Outlook Improves on Nigeria GDP Growth Trajectory
The World Bank raised Nigeria’s 2026 growth forecast to 4.4%, up from 3.7%, and maintained the same projection for 2027.
S&P Global Ratings upgraded Nigeria’s sovereign credit rating from ‘B-’ to ‘B’, citing improved macroeconomic stability and a stable outlook.
BuyerMetrics Bottom Line
Nigeria’s Q1 2026 performance confirms a services-led growth structure, with the sector accounting for the largest share of output and acting as the primary growth engine.
Agriculture and industry provided supporting momentum, while oil remained marginal, reinforcing a broader shift toward a domestic demand and services-driven economy.
