Nigeria’s economic growth slowed in the first quarter of 2026 as Gross Domestic Product (GDP) growth fell to 3.89 per cent from 4.07 per cent recorded in the fourth quarter of 2025.
This is according to data released Monday by the National Bureau of Statistics (NBS).
The latest figure, however, was higher than the 3.13 per cent growth posted in the first quarter of 2025.
The NBS said, “Gross Domestic Product (GDP) grew by 3.89% (year-on-year) in real terms in the first quarter of 2026.”
In nominal terms, the economy was valued at N110.79 trillion in Q1 2026, lower than the N122.81 trillion recorded in Q4 2025.
Non-Oil Sector Drives Economy
The non-oil sector remained the main driver of economic activity, contributing 96.08 per cent to total GDP and recording a real growth of 3.94 per cent in Q1 2026, higher than the 3.19 per cent growth recorded in the same period of 2025.
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According to the NBS, the sector was driven mainly by “Information and Communication (Telecommunications); Agriculture (Crop production); Trade; Manufacturing (Cement); Financial & Insurance (Financial Institutions); Real Estate; Construction; and Transportation and Storage (Road Transport).”
The services sector remained the largest contributor to the economy, accounting for 57.73 per cent of real GDP and expanding by 4.31 per cent.
Agriculture contributed 23.16 per cent and recorded a strong recovery with 3.15 per cent growth, compared with 0.07 per cent in Q1 2025.
The industrial sector accounted for 19.11 per cent of GDP and grew by 3.50 per cent.
Trade remained the biggest single contributor to real GDP at 17.89 per cent, followed by crop production at 17.38 per cent, real estate at 13.10 per cent, and telecommunications and information services at 9.19 per cent.
The Information and Communication sector posted one of the strongest performances with 10.98 per cent growth, while Water Supply, Sewerage and Waste Management expanded by 10.32 per cent.
However, some sectors contracted sharply. Electricity, Gas, Steam and Air Conditioning Supply recorded a negative growth rate of 15.30 per cent.
Coal Mining, Metal Ores, Air Transport and Other Services also declined.
Oil Output Falls as Sector Growth Slows
Nigeria’s oil sector recorded lower production in the review quarter despite maintaining positive growth.
Average daily crude oil production stood at 1.55 million barrels per day, below the 1.62 million barrels per day recorded in Q1 2025 and the 1.58 million barrels per day in Q4 2025.
Further, the decline extended a downward trend from 1.68 million barrels per day in Q2 2025.
Despite weaker output, the oil sector recorded year-on-year real growth of 2.57 per cent, higher than the 1.87 per cent growth posted in Q1 2025 but slower than the 6.79 per cent growth recorded in Q4 2025.
The NBS said the sector accounted for 3.92 per cent of total real GDP in Q1 2026, slightly lower than 3.97 per cent in the corresponding period of 2025 but higher than 2.87 per cent in the previous quarter.
The report also showed that several sectors made minimal contributions to economic output.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X