Nigeria’s economy expanded at a faster pace in the second quarter of this year, with real gross domestic product (GDP) growing by 4.43 per cent year-on-year.
However, the underlying performance of the economy’s major sectors points to a slowdown in industrial activity despite stronger growth in agriculture and services.
Data released on Monday by the National Bureau of Statistics (NBS) showed that the economy grew faster than the 4.23 per cent recorded in the second quarter of 2025 and the 3.89 per cent recorded in the first quarter of 2026.
But while all three broad sectors of the economy recorded positive growth, the industrial sector lost significant momentum compared with the previous year.
Industries grew by 3.96 per cent year-on-year in the second quarter of 2026, sharply slower than the 7.46 per cent growth recorded in the corresponding period of 2025.
Although the sector’s performance improved slightly from the 3.50 per cent growth recorded in the first quarter of 2026, the figures show that industrial activity has yet to return to the pace recorded a year earlier.
The slowdown contrasts with stronger performances in agriculture and services, helping to explain why the economy’s overall growth accelerated even as one of its three major sectors remained relatively weak.
The services sector, which remained the largest contributor to the economy, grew by 4.60 per cent and accounted for 56.62 per cent of total real GDP. Its contribution was slightly higher than the 56.53 per cent recorded in the second quarter of 2025.
Agriculture also recorded a stronger performance, growing by 4.39 per cent, compared with 2.82 per cent in the corresponding quarter of 2025 and 3.15 per cent in the first quarter of 2026. The sector accounted for 26.15 per cent of real GDP.
Put together, the stronger performances of services and agriculture helped offset the slower pace of industrial growth.
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Non-oil economy remains the main growth engine
The non-oil sector continued to dominate Nigeria’s economic structure, contributing 95.84 per cent to real GDP during the quarter.
The sector grew by 4.31 per cent year-on-year, faster than the 3.64 per cent recorded in the second quarter of 2025 and the 3.94 per cent growth recorded in the first quarter of 2026.
Growth in the non-oil economy was driven by agriculture, particularly crop production, information and communication, real estate, trade, financial institutions, cement manufacturing and construction.
Trade remained the single largest contributor to real GDP at 17.93 per cent, followed closely by crop production at 17.66 per cent. Real estate services contributed 12.71 per cent, while telecommunications and information services accounted for 9.72 per cent.
The information and communication sector was among the stronger performers, expanding by 9.62 per cent in real terms and contributing 11.74 per cent to total real GDP, with telecommunications providing much of the momentum.
Construction also maintained a positive trajectory, growing by 6.75 per cent, compared with 5.27 per cent in the second quarter of 2025 and 6.38 per cent in the first quarter of 2026.
Manufacturing, however, grew by a more modest 3.24 per cent in real terms and accounted for 7.72 per cent of total GDP, reflecting the broader weakness in industrial expansion.
The industrial sector accounted for 17.23 per cent of real GDP during the quarter, making its slowdown significant despite the overall acceleration in economic growth.
Oil rebound provides additional support
The oil sector also provided support to the broader economy as production increased during the quarter.
Nigeria recorded average daily oil production of 1.72 million barrels per day, compared with 1.68 million barrels per day in the second quarter of 2025 and 1.55 million barrels per day in the first quarter of 2026.
The oil sector grew by 7.31 per cent year-on-year and expanded by 10.91 per cent on a quarter-on-quarter basis. Its contribution to real GDP increased to 4.16 per cent from 4.05 per cent a year earlier and 3.92 per cent in the preceding quarter.
However, the sector’s year-on-year growth was still significantly slower than the 20.46 per cent recorded in the second quarter of 2025.
The stronger oil output slightly reduced the dominance of the non-oil economy, whose contribution declined marginally from 95.95 per cent in the second quarter of 2025 and 96.08 per cent in the first quarter of 2026.
In nominal terms, Nigeria’s GDP stood at ₦119.29 trillion in the second quarter of 2026, compared with ₦100.73 trillion in the corresponding period of 2025, representing nominal growth of 18.43 per cent.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X