Barbara Bako, Abuja.
Nigeria’s economy expanded by 3.89 per cent in real terms in the first quarter of 2026, driven largely by strong performance in the non-oil sector, particularly telecommunications, agriculture, finance and trade, even as crude oil production declined during the period.
Data released by the National Bureau of Statistics showed that the growth rate was higher than the 3.13 per cent recorded in the corresponding quarter of 2025, reflecting sustained economic resilience across key sectors.
The report indicated that the non-oil sector remained the main engine of growth, contributing 96.08 per cent to the nation’s real GDP in Q1 2026.
The sector grew by 3.94 per cent, an improvement from the 3.19 per cent posted in the same period last year.
According to the bureau, growth in the non-oil economy was supported by increased activities in telecommunications, crop production, trade, cement manufacturing, financial institutions, construction, transportation and real estate.
The services sector retained its position as the largest contributor to economic output, accounting for 57.73 per cent of total GDP, while recording a growth rate of 4.31 per cent year-on-year.
Within the services sector, Information and Communication emerged as one of the strongest-performing segments, recording a real growth of 10.98 per cent and contributing 11.31 per cent to real GDP.
Agriculture also recorded stronger output during the quarter, growing by 3.15 per cent in real terms compared to 0.07 per cent in Q1 2025.
The sector contributed 23.16 per cent to aggregate real GDP, with crop production remaining the dominant activity.
Trade activities contributed 17.89 per cent to real GDP and grew by 2.08 per cent, while the construction sector posted a 6.38 per cent real growth rate.
The finance and insurance sector equally maintained strong momentum, recording real growth of 8.54 per cent during the review period.
Despite the overall economic expansion, oil production weakened in the first quarter. Average daily crude oil output fell to 1.55 million barrels per day from 1.62 million barrels per day in the same quarter of 2025.
Although the oil sector recorded real growth of 2.57 per cent, its contribution to total real GDP remained low at 3.92 per cent, highlighting the economy’s growing dependence on non-oil activities.
In nominal terms, aggregate GDP at basic prices rose to N110.79 trillion in Q1 2026, representing a 17.79 per cent increase from N94.05 trillion recorded in the corresponding quarter of 2025.
However, not all sectors recorded positive growth; the electricity, gas, steam and air conditioning supply sector contracted by 15.30 per cent in real terms, while the “other services” segment declined by 1.96 per cent
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