Nigeria’s economy recorded stronger growth in the second quarter of 2026, with real Gross Domestic Product (GDP) expanding by 4.43 per cent year-on-year, according to the latest report released by the National Bureau of Statistics (NBS).
The Q2 2026 performance represents an improvement over the 4.23 per cent recorded in the corresponding quarter of 2025 and a significant acceleration from the 3.89 per cent growth recorded in the first quarter of 2026.
The latest figure indicates a 0.20 percentage-point increase compared with the same period last year, reflecting a gradual strengthening of economic activity despite the challenging operating environment facing businesses and households.
The NBS report showed that the improved performance was supported by stronger activities in the agriculture and services sectors, while the industrial sector recorded a sharp moderation in its growth rate.
The development also coincided with an improvement in crude oil production, which rose to an average of 1.72 million barrels per day (mbpd) during the quarter, compared with 1.68 million mbpd in Q2 2025 and 1.55 million mbpd in Q1 2026.
The oil sector subsequently recorded 7.31 per cent real growth year-on-year in Q2 2026, representing a significant improvement from the 2.57 per cent recorded in the preceding quarter, although it was lower than the exceptionally high 20.46 per cent growth recorded in Q2 2025.
Despite the improvement in crude oil production and oil-sector growth, the non-oil sector continued to dominate Nigeria’s economy, accounting for 95.84 per cent of real GDP during the quarter.
The non-oil sector grew by 4.31 per cent in real terms, compared with 3.64 per cent in Q2 2025 and 3.94 per cent in Q1 2026. Its performance was supported by activities including agriculture, telecommunications and information services, real estate, trade, financial and insurance services, manufacturing and construction.
AGRICULTURE REBOUNDS
The agricultural sector recorded one of the most notable improvements during the quarter.
According to the NBS, agriculture grew by 4.39 per cent in real terms in Q2 2026, a substantial improvement from the 2.82 per cent recorded in Q2 2025.
The sector also accounted for 26.15 per cent of Nigeria’s real GDP during the quarter, underlining its continued importance to the national economy.
The stronger agricultural performance was largely associated with improved activities in crop production, which remains the dominant component of the sector.
SERVICES REMAIN DOMINANT
The services sector retained its position as the largest contributor to Nigeria’s economic output.
It expanded by 4.60 per cent in Q2 2026, compared with 3.94 per cent in the corresponding quarter of 2025.
In terms of contribution, services accounted for 56.62 per cent of aggregate real GDP, marginally higher than the 56.53 per cent recorded in Q2 2025.
Trade, information and communication, financial services, real estate and other service-related activities remained important contributors to economic activity during the period.
INDUSTRIAL GROWTH SLOWS
While agriculture and services posted stronger performances, the industrial sector recorded a significant slowdown.
The sector grew by 3.96 per cent in Q2 2026, compared with the much stronger 7.46 per cent recorded in Q2 2025.
The decline in industrial growth remains one of the key concerns highlighted by the latest GDP figures, particularly given the importance of manufacturing, construction and other productive activities to job creation and sustainable economic expansion.
GDP RISES TO N119.29 TRILLION
In nominal terms, Nigeria’s aggregate GDP at basic prices stood at approximately N119.29 trillion in Q2 2026.
This represents an 18.43 per cent year-on-year increase compared with the N100.73 trillion recorded in the corresponding quarter of 2025.
The increase in nominal GDP reflects the combined impact of economic expansion and prevailing price levels, making the real GDP growth figure particularly important in assessing the underlying increase in economic activity.
ECONOMIC RECOVERY GATHERS MOMENTUM
The Q2 performance marks another positive movement in Nigeria’s recent growth trajectory.
The economy grew by 3.89 per cent in Q1 2026 before accelerating to 4.43 per cent in Q2, suggesting that economic activity gained momentum during the April-June period.
The improvement also comes against the backdrop of ongoing economic reforms and efforts to boost production, attract investment, improve oil output and strengthen the non-oil economy.
However, despite the encouraging headline figure, the pace of expansion remains a key issue for policymakers, particularly as Nigeria seeks to achieve stronger and more inclusive economic growth.
The latest performance is also still below the ambitious 7 per cent annual growth target set by President Bola Ahmed Tinubu’s administration for 2027.
For millions of Nigerians, the critical question will be whether the improved GDP performance can translate into more jobs, higher incomes, lower business costs and improved living standards.
The latest figures therefore present a mixed but broadly positive picture: Nigeria is growing faster, agriculture and services are strengthening, oil production has improved and the non-oil economy remains dominant. But the sharp slowdown in industrial growth underscores the need for sustained investment in productive sectors if the country is to achieve faster, broader and more sustainable economic expansion.
