…Agriculture, telecoms, financial services drive economic expansion
….Oil production declines despite improved sector performance
Nigeria’s economy recorded a 3.89 per cent year-on-year growth in the first quarter of 2026, according to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics.
The figure represents an improvement over the 3.13 per cent growth recorded in the corresponding period of 2025, signalling a gradual recovery across major sectors of the economy.
The report showed that the agriculture sector emerged as one of the strongest drivers of growth during the quarter under review, expanding by 3.15 per cent compared to the marginal 0.07 per cent growth posted in Q1 2025.
Similarly, the industry sector recorded a growth rate of 3.50 per cent, slightly higher than the 3.42 per cent achieved in the same period last year, while the services sector grew by 4.31 per cent.
According to the NBS, the services sector remained the highest contributor to aggregate GDP, accounting for 57.73 per cent of the nation’s output in Q1 2026, compared to 57.50 per cent in Q1 2025.
The report further revealed that Nigeria’s aggregate GDP at basic price stood at N110.79 trillion in nominal terms during the period under review, representing a 17.79 per cent increase from the N94.05 trillion recorded in the first quarter of 2025.
Despite the improved economic growth, Nigeria’s average daily crude oil production declined to 1.55 million barrels per day in Q1 2026, lower than the 1.62 million barrels per day recorded in the corresponding quarter of 2025.
However, the oil sector still recorded a real growth of 2.57 per cent year-on-year, an increase from the 1.87 per cent growth posted in Q1 2025.
The oil sector contributed 3.92 per cent to the country’s total real GDP during the quarter, slightly lower than the 3.97 per cent contribution recorded in the corresponding period of last year.
The non-oil sector continued to dominate the economy, growing by 3.94 per cent in real terms during Q1 2026.
The NBS attributed the performance of the non-oil sector to increased activities in telecommunications, crop production, trade, cement manufacturing, financial institutions, real estate, construction, and road transportation.
The report added that the non-oil sector accounted for 96.08 per cent of the nation’s GDP in the first quarter of 2026.
In the mining and quarrying sector, nominal growth stood at 13.92 per cent year-on-year, with crude petroleum and natural gas remaining the major contributors to the sector.
Crude oil activities recorded the highest growth among sub-sectors at 16.37 per cent, followed by quarrying and other minerals at 14.55 per cent.
The mining and quarrying sector contributed 4.23 per cent to Nigeria’s overall GDP during the quarter under review.
In real terms, the sector recorded a 1.89 per cent year-on-year growth in Q1 2026.
Economic analysts say the latest GDP figures indicate gradual economic resilience driven largely by agriculture and non-oil activities, despite persistent challenges in crude oil production and global market uncertainties.
The improved performance of telecommunications, financial services and construction also reflects growing domestic economic activities across key sectors.
Observers, however, noted that sustaining the current growth momentum would require improved energy supply, stable fiscal policies, increased investment in infrastructure and enhanced security across farming communities.
The GDP report comes amid renewed efforts by the Federal Government to diversify the economy and reduce dependence on crude oil revenue.
Stakeholders have continued to call for stronger support for agriculture, manufacturing and small businesses to sustain growth and create jobs across the country.
The NBS report is expected to guide economic planning and policy direction as Nigeria navigates ongoing fiscal and monetary reforms in 2026.
