Fresh NBS figures show stronger economic momentum in Q1 2026, with agriculture staging a sharp rebound while the non-oil sector continues to power growth…..
Nigeria’s economy began 2026 on a stronger footing, recording improved growth across major sectors as new figures released by the National Bureau of Statistics revealed a steady expansion in the country’s Gross Domestic Product (GDP) during the first quarter of the year.
According to the latest data, Nigeria’s real GDP grew by 3.89 per cent year-on-year in Q1 2026, marking a noticeable improvement from the 3.13 per cent growth recorded during the same period in 2025.
The report points to rising activity across agriculture, industry, and key service-based sectors, reinforcing signs that the economy may be gradually stabilising after prolonged inflationary pressure and foreign exchange volatility.
One of the biggest surprises in the report came from the agriculture sector, which posted a strong rebound after a weak outing last year. Agriculture expanded by 3.15 per cent in the first quarter of 2026, a major leap from the marginal 0.07 per cent growth recorded in Q1 2025.
Industry also maintained positive momentum, growing by 3.50 per cent compared to 3.42 per cent in the corresponding period last year.
Meanwhile, the services sector once again remained the backbone of the Nigerian economy, recording 4.31 per cent growth and contributing 57.73 per cent to total GDP. The sector had contributed 57.50 per cent during the same quarter in 2025.
In nominal terms, aggregate GDP at basic prices rose sharply to ₦110.79 trillion in Q1 2026 from ₦94.05 trillion recorded a year earlier, representing a year-on-year increase of 17.79 per cent.
Despite the broader economic improvement, oil production continued to decline.
Nigeria recorded an average daily crude oil production of 1.55 million barrels per day in Q1 2026, lower than the 1.62 million barrels per day recorded in Q1 2025 and also below the 1.58 million barrels per day posted in the final quarter of 2025.
Still, the oil sector managed to record real growth of 2.57 per cent year-on-year, improving from 1.87 per cent recorded in the corresponding quarter of 2025.
However, the sector’s contribution to the country’s total real GDP slipped slightly to 3.92 per cent from 3.97 per cent recorded a year earlier, underlining Nigeria’s growing dependence on non-oil economic activities.
The non-oil sector remained the major engine of growth during the quarter, expanding by 3.94 per cent in real terms, higher than the 3.19 per cent growth recorded in Q1 2025.
According to the NBS, the strongest contributors to non-oil growth included telecommunications, crop production, trade, cement manufacturing, financial institutions, real estate, construction, and road transportation.
The sector contributed an overwhelming 96.08 per cent to Nigeria’s GDP during the period under review.
The mining and quarrying sector also posted stronger numbers, recording nominal growth of 13.92 per cent year-on-year in Q1 2026.
Within the sector, crude petroleum and natural gas remained dominant, accounting for over 91 per cent of total sector activity, while quarrying and other minerals also showed significant expansion.
In real terms, mining and quarrying grew by 1.89 per cent year-on-year, although this represented a slowdown compared to previous quarters.
The latest GDP figures are likely to strengthen optimism around Nigeria’s economic outlook for 2026, especially as policymakers continue efforts to diversify the economy away from oil dependence and stimulate productivity in agriculture, manufacturing, technology, and financial services.
While challenges surrounding inflation, energy costs, and foreign exchange pressures remain, the Q1 numbers suggest that several critical sectors of the economy are beginning to regain momentum.
