KEY POINTS

• Nigeria’s economy grew by 3.89% in Q1 2026, according to the National Bureau of Statistics, showing a slowdown from the previous quarter.
• Agriculture improved significantly, while industry recorded modest gains and services remained the largest contributor to GDP at 57.73%.
• Despite slower real growth, nominal GDP rose sharply to ₦110.78 trillion, reflecting strong price-level expansion in the economy.

Nigeria’s economy expanded at a slower pace of 3.89 per cent year-on-year in real terms in the first quarter of 2026, according to the latest Gross Domestic Product, GDP, report released by the National Bureau of Statistics (National Bureau of Statistics).

The figure shows a moderation in economic momentum when compared to the 4.07 per cent growth recorded in the fourth quarter of 2025. However, it still represents an improvement over the 3.13 per cent growth achieved in the first quarter of 2025, indicating a mixed but relatively stable economic trajectory.

The report highlights ongoing shifts in key sectors of the Nigerian economy as growth continues to respond to structural and policy-driven changes.

The agricultural sector posted notable gains during the period under review, growing by 3.15 per cent compared to just 0.07 per cent recorded in the corresponding quarter of 2025.

This improvement reflects better performance in farming activities and related value chains, which have continued to play a critical role in Nigeria’s food supply and rural economy.

Despite challenges such as inflationary pressure and cost of inputs, the sector’s recovery signals gradual stabilisation in parts of the country’s non-oil economy.

Industry and Services Record Mixed Performance

The industrial sector also recorded modest growth, rising to 3.50 per cent from 3.42 per cent in the same period last year. This indicates a slight but steady improvement in manufacturing, construction, and related activities.

In contrast, the services sector, while still the strongest contributor to GDP, recorded a marginal decline in growth, slipping slightly from 4.33 per cent to 4.31 per cent.

Despite this slight slowdown, the services sector maintained its dominant position in the economy, driven by activities in finance, telecommunications, trade, and other service-based industries.

The services sector continued to dominate Nigeria’s economic structure, accounting for 57.73 per cent of total GDP in Q1 2026.

This represents a slight increase from 57.5 per cent recorded in the same period of 2025, reinforcing its position as the largest contributor to national output.

The sector’s dominance underscores Nigeria’s gradual shift toward a service-oriented economy, with growing contributions from digital services, financial intermediation, and retail trade.