Nigeria’s GDP Grows 3.89% in Q1 2026 as Agriculture and Services Power Economic Expansion
Nigeria’s economy began 2026 on a stronger footing, with the country’s Gross Domestic Product (GDP) expanding by 3.89% year-on-year in the first quarter, according to the latest figures released by the National Bureau of Statistics (NBS). The growth marks a notable improvement from the 3.13% recorded in the same period of 2025, signaling increased economic resilience amid ongoing reforms and shifting global economic conditions.
The latest data highlights the growing strength of Nigeria’s non-oil economy, which continued to serve as the backbone of national output. The non-oil sector expanded by 3.94% in real terms, accounting for more than 96% of total GDP, while the services sector retained its position as the largest contributor to economic activity. Services contributed 57.73% of GDP and recorded a robust 4.31% growth, supported by strong performances in telecommunications, financial services, trade, transportation, real estate, and construction.
One of the most encouraging developments in the report was the rebound in the agricultural sector. Agriculture grew by 3.15% in real terms, a significant improvement from the marginal 0.07% growth recorded in the first quarter of 2025. Increased crop production and improved farming activities helped boost output, reinforcing the sector’s critical role in food security, employment generation, and rural economic development across the country.
Although crude oil production declined to an average of 1.55 million barrels per day from 1.62 million barrels per day a year earlier, the oil sector still posted a 2.57% growth rate, outperforming the 1.87% growth recorded in Q1 2025. The sector contributed 3.92% of total GDP, slightly lower than the previous year, underscoring Nigeria’s gradual shift toward a more diversified economy. Meanwhile, construction emerged as one of the fastest-growing sectors with 6.38% growth, while industrial activities maintained steady momentum.
The positive GDP figures come amid growing confidence from international institutions regarding Nigeria’s economic outlook. The World Bank has upgraded its 2026 growth forecast for Nigeria to 4.4%, while S&P Global Ratings recently raised the country’s sovereign credit ratings and maintained a stable outlook. With economic activity strengthening across agriculture, industry, and services, analysts believe Nigeria is gradually building a broader foundation for sustainable growth, even as inflationary pressures and global uncertainties remain key challenges.
source: nairametrics