5 Sectors that Expanded Nigeria’s Economy in Q1 2026

Nigeria started 2026 on a better economic footing, but the recovery remains uneven.

According to the National Bureau of Statistics, real GDP grew by 3.89 percent in the first quarter of 2026. This is higher than the 3.13 percent in Q1 2025 and just above the 3.87 percent growth for all of 2025.

These numbers show progress. Inflation is lower than it was in 2025. External reserves have gone up. The naira is also more stable now than during the worst of the foreign exchange crisis.

However, there are still weak spots in the economy. Oil production is below target. Borrowing costs are high. Power supply problems continue to hurt productivity. Household purchasing power is still under strain.

Best Performing Sectors in Q1 2026

The non-oil sectors showed the strongest growth in Nigeria.

Information and communication grew by 10.98 percent, making it one of the best-performing areas. Telecommunications and information services expanded by 12.24 percent, which highlights the ongoing strength of Nigeria’s digital economy.

Construction also did well, growing by 6.38 percent. This suggests there is more activity in infrastructure, real estate, and related services.

Financial and insurance activities grew by 8.54 percent. While this is less than the 15.03 percent seen in Q1 2025, the sector is still one of the stronger performers in the economy.

Agriculture grew by 3.15 percent, which is a big jump from just 0.07 percent in Q1 2025. This is important because if agriculture keeps improving, it could help lower food inflation.

Manufacturing also got better, growing by 3.29 percent. Cement grew by 11.53 percent, oil refining by 37.46 percent, and chemical and pharmaceutical products by 6.15 percent.

Worst Performing Sectors in Q1 2026

The power sector was still one of the weakest parts of the economy.

Electricity, gas, steam, and air conditioning supply shrank by 15.30 percent in Q1 2026. This is a big concern because poor power supply makes production more expensive and slows business growth.

Oil and gas also showed weak growth. Crude petroleum and natural gas grew by just 2.57 percent, and mining and quarrying grew by 1.89 percent.

This is a big problem for Nigeria. Non-oil sectors now drive most of the GDP growth, but oil still brings in most of the country’s foreign exchange and government revenue.

What the GDP Structure Shows

Services made up 57.73 percent of real GDP in Q1 2026. Agriculture contributed 23.16 percent, and industries made up 19.11 percent.

The non-oil sector made up 96.08 percent of GDP, while oil contributed just 3.92 percent.

This means Nigeria’s economy looks more diversified on paper. However, the country still relies heavily on oil for its external earnings.

This gap is still one of Nigeria’s biggest economic risks.

Expert View

Analysts say Nigeria’s Q1 2026 GDP report shows real progress, but the recovery is not complete.

The economy is growing, but most households have not felt much of that growth. High food prices, weak purchasing power, costly credit, and unreliable electricity still affect daily business.

The progress in agriculture, ICT, construction, and manufacturing is good news. But Nigeria needs to fix oil production, power supply, and industrial competitiveness to strengthen growth.

The second half of 2026 will show if the recovery can go beyond the numbers and actually improve people’s incomes.

Nigeria’s H2 2026 Economic Outlook: Can Growth Reach Ordinary Citizens?

Nigeria is starting the second half of 2026 in a better position than it was a year ago.

Growth has picked up. External reserves are higher. Non-oil revenue is going up. Key sectors are gaining momentum.

Even so, the recovery is still fragile.

If oil production stays low, power supply gets worse, or high interest rates keep limiting credit, growth may show up in the data but not in people’s wallets.

The real question now is not if Nigeria can grow, but whether that growth can become broader, stronger, and truly benefit businesses and households.