The National Bureau of Statistics (NBS) has released data showing that Nigeria's real Gross Domestic Product (GDP) grew by 3.89% in the first quarter of 2026. This marks an improvement from the 3.13% growth recorded in the same period of 2025 and is marginally above the 3.87% growth rate for the full year 2025. The expansion was supported by key sectors including agriculture, services, ICT, manufacturing, construction, transportation, and financial services.
Mining and Quarrying
The Mining and Quarrying sector posted a nominal growth of 13.92% and a real growth of 1.89% year-on-year. Crude petroleum and natural gas dominated the sector, accounting for 91.08% of total output and expanding by 16.37%, making it the primary driver of growth. The sector contributed 4.23% to nominal GDP and 4.14% to real GDP.
Agriculture
Agriculture recorded a nominal growth of 9.93% and a real growth of 3.15% year-on-year. It remains the largest sector of the economy, contributing 23.16% to real GDP. Crop production dominated, accounting for 66.76% of the sector’s output. However, the sector experienced a sharp quarter-on-quarter contraction of 36.37% in real terms.
Manufacturing
The manufacturing sector expanded by 10.22% in nominal terms and 3.29% in real terms year-on-year. Growth was supported by increased activity in cement, food processing, and chemical production. The sector contributed 10.08% to nominal GDP and 9.57% to real GDP, indicating steady recovery and gradual industrial expansion.
Trade
Trade remained one of the largest sectors, growing 38.15% in nominal terms but only 2.08% in real terms. The divergence reflects price effects rather than strong volume growth. Trade accounted for 18.20% of nominal GDP and 17.89% of real GDP.
Real Estate
The real estate sector grew by 14.25% nominally and 2.29% in real terms year-on-year. It contributed 16.94% to nominal GDP and 13.10% to real GDP.
Information and Communication (ICT)
ICT continued to be one of Nigeria’s strongest sectors, growing by 9.19% in nominal terms and 10.98% in real terms year-on-year. It contributed 9.54% to nominal GDP and 11.31% to real GDP.
Finance and Insurance
The finance and insurance sector recorded one of the strongest performances, growing by 46.91% nominally and 8.54% in real terms. This reflects increased banking activity, digital payments expansion, and financial inclusion. It contributed 3.83% to nominal GDP and remains a key driver of modern economic activity.
Construction
Construction grew by 18.30% in nominal terms and 6.38% in real terms year-on-year, supported by ongoing infrastructure and private development projects. It contributed 5.41% to nominal GDP and 4.85% to real GDP.
Transport and Storage
The transport sector grew by 6.51% in nominal terms and 7.41% in real terms year-on-year, indicating modest but stable expansion. It contributed 1.36% to nominal GDP and 1.02% to real GDP.
Electricity, Gas, and Utilities
The electricity and gas sector contracted by 15.30% in real terms, despite nominal growth of 4.98%. Its contribution remained marginal at 0.29% of GDP.
Water Supply and Waste Management
This sector recorded strong growth of 25.97% nominally and 10.32% in real terms. Although small at 0.24% of GDP, it remains one of the fastest-growing utility-related sectors.
Accommodation and Food Services
Growth slowed significantly to 5.97% nominal and 4.36% real, a steep drop from over 60% recorded in the previous year. The sector contributed less than 1% of GDP.
Professional Services
Professional, scientific, and technical services grew by 38.95% nominally and 2.66% in real terms, supported by increased demand for consultancy and business services. It contributed 2.48% to nominal GDP.
Administrative and Support Services
This sector expanded by 39.69% nominally and 3.21% in real terms, although quarterly performance slowed. It accounted for 1.28% of nominal GDP.
Public Administration
Public administration grew by 37.99% nominally but only 1.96% in real terms, while contracting 7.24% quarter-on-quarter. It contributed 2.14% to nominal GDP.
Education
Education remained weak, growing just 1.07% nominally and 1.22% in real terms year-on-year, accounting for about 1% of GDP. The sector continues to face structural challenges and underinvestment.
Health and Social Services
Health grew modestly by 2.51% nominally and 1.99% in real terms, contributing 1.77% of GDP, reflecting slow but steady expansion in healthcare demand.
Arts, Entertainment, and Recreation
This sector grew strongly by 31.21% nominally and 11.25% in real terms, though it remains small at 0.65% of GDP. Growth reflects rising consumer engagement in entertainment activities.
Other Services
The sector contracted by 1.40% nominally and 1.96% in real terms, contributing 1.33% of GDP.
Expert Reaction
Reacting to the latest GDP figures, Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern over the performance of the electricity and gas sector, which was among the worst-performing sectors. The downturn has raised concerns about the country’s power infrastructure and its impact on industrial growth, business competitiveness, and overall economic stability. Yusuf attributed the decline to persistent challenges in generation, transmission, and distribution, as well as liquidity and governance issues within the power sector. He stated: “The most troubling aspect of the report is the sharp contraction of the electricity/gas sector by 15.30%… and raises serious concerns about the sustainability of economic growth, industrial productivity, and business competitiveness. Electricity is not merely another economic sector; it is the foundation upon which productivity, industrialisation, competitiveness, and inclusive growth depend. Deteriorating electricity supply further escalates production costs and weakens competitiveness.”
