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Agriculture, Telecoms Lead Economic Expansion in 2026, NBS Reveals

Nigeria’s economy grew by 3.89% in real terms in Q1 2026, according to the National Bureau of Statistics (NBS), with expansion driven mainly by agriculture, telecommunications, financial services, construction, and trade.

This growth outpaced the 3.13% recorded in Q1 2025, underscoring the continued dominance of the non-oil sector, which contributed 96.08% of real GDP.

The NBS reported, “Gross Domestic Product grew by 3.89 per cent (year-on-year) in real terms in the first quarter of 2026, higher than the 3.13 per cent recorded in the first quarter of 2025.”

Agriculture grew 3.15%, up from 0.07% in Q1 2025, while industry expanded 3.50%. The services sector grew 4.31%, contributing 57.73% of GDP, making it the largest component of the economy.

Nominal GDP rose to ₦110.79 trillion, compared with ₦94.05 trillion in Q1 2025, representing 17.79% year-on-year growth.

Crude oil production fell to 1.55 million barrels per day, down from 1.62 mbpd in Q1 2025, yet the oil sector still posted 2.57% real growth, contributing 3.92% of GDP.

Key non-oil drivers included telecommunications (10.98% growth, 11.31% share of GDP), finance and insurance (8.54% growth, 3.76% share), construction (6.38% growth, 4.85% share), and manufacturing (3.29% growth, 9.57% share). Trade remained the largest contributor at 17.89% of GDP.

Other sectors posting strong growth included arts, entertainment and recreation (11.25%), water supply and waste management (10.32%), and transportation and storage (7.41%), while electricity and gas contracted by 15.30%.

The World Bank, however, recently downgraded Nigeria’s growth forecast to 4.1% for 2026, citing global uncertainties and oil market volatility.