Nigeria's GDP Growth Slows to 3.89% in Q1, Services Sector Leads

Nigeria's economic growth moderated in the first quarter of 2026, with Gross Domestic Product (GDP) expanding by 3.89 percent. This figure represents a slight deceleration from the 4.07 percent growth recorded in the preceding quarter. However, on a year-on-year basis, the economy showed improvement, surpassing the 3.13 percent growth registered in the first quarter of 2025.

The services sector remained the primary driver of economic activity, contributing 57.73 percent to the total GDP. This marks a marginal increase from its 57.50 percent share in the corresponding quarter of the previous year. The National Bureau of Statistics (NBS) reported that the aggregate GDP at basic prices reached N110.78 trillion in nominal terms, up from N94.05 trillion in Q1 2025, with real GDP standing at N51.26 trillion.

The non-oil sector continued to dominate the economy, accounting for 96.08 percent of real GDP in Q1 2026. Despite this significant contribution, it was a slight decrease from the 97.13 percent share in the fourth quarter of 2025, though higher than the 96.03 percent recorded in Q1 2025. Conversely, the oil sector's contribution to real GDP rose to 3.92 percent in the review quarter, up from 2.87 percent in the previous quarter and slightly below the 3.97 percent seen in Q1 2025.

Average daily oil production experienced a minor decline, falling to 1.55 million barrels per day (mbpd) from 1.58 mbpd in Q4 2025 and 1.62 mbpd in the same quarter of 2025. Other sectors also showed varied performance: agriculture contributed 23.16 percent to aggregate GDP, down from 28.66 percent in the prior quarter; manufacturing accounted for 9.57 percent; and trade contributed 17.89 percent. Finance and insurance saw an increase, adding 3.76 percent to growth.