Nigeria’s economy recorded stronger growth in the second quarter of 2026, expanding by 4.43 per cent in real terms, according to the latest report by the National Bureau of Statistics (NBS).
The performance represents an improvement over the 4.23 per cent recorded in the second quarter of 2025 and the 3.89 per cent growth achieved in the first quarter of 2026.
The NBS released the figures in its Gross Domestic Product (GDP) Report for the second quarter of 2026.
The latest result indicates that economic activity has continued to strengthen, although the pace of expansion remains moderate and uneven across major sectors.
Nigeria recorded 3.87 per cent annual GDP growth in 2025, compared with 3.38 per cent in 2024, according to the statistics agency.
In nominal terms, aggregate GDP stood at approximately ₦119.29 trillion in Q2 2026, compared with about ₦100.73 trillion in the corresponding quarter of 2025, representing an 18.43 per cent nominal increase. Real GDP was estimated at ₦53.47 trillion.
Services Remain the Main Driver
The services sector continued to dominate Nigeria’s economic output during the quarter, accounting for 56.62 per cent of real GDP.
The sector grew by **4.60 per cent** year-on-year, compared with 3.94 per cent in Q2 2025.
Information and communication, financial services, trade, real estate and other service-related activities contributed to the sector’s performance.
The figures underline the increasing importance of services to Nigeria’s economy, particularly as telecommunications, finance, digital activities and other service industries continue to expand.
Agriculture Records Stronger Growth
Agriculture also performed better during the quarter.
The sector grew by 4.39 per cent in real terms, compared with 2.82 per cent in the same quarter of 2025.
Agriculture accounted for 26.15 per cent of real GDP, with crop production remaining an important contributor to the sector’s output.
The stronger agricultural performance comes against the backdrop of continuing challenges involving farm inputs, insecurity, transportation, climate pressures and access to infrastructure.
Industrial Growth Slows
Despite the improvement in overall GDP, the industrial sector recorded a significant slowdown.
Industry grew by 3.96 per cent in Q2 2026, compared with 7.46 per cent in the corresponding quarter of 2025.
The sector accounted for 17.23 per cent of real GDP.
The weaker industrial performance indicates that the broader economic recovery has not been evenly distributed, with manufacturers and other productive businesses still facing pressures linked to energy supply, financing, logistics, infrastructure and operating costs.
The NBS data showed that manufacturing nevertheless expanded during the quarter, while construction and several other industrial activities also recorded growth.
Oil Sector Rebounds
The oil sector recorded a stronger performance in Q2, helping to lift the overall growth rate.
According to the NBS data, the sector expanded by 7.31 per cent year-on-year, compared with 2.57 per cent in the first quarter of 2026.
On a quarter-on-quarter basis, the oil sector grew by 10.91 per cent.
Average crude oil production increased to about 1.72 million barrels per day in Q2 2026, compared with 1.55 million barrels per day in Q1 and 1.68 million barrels per day in Q2 2025.
Oil’s contribution to real GDP rose to 4.16 per cent, from 4.05 per cent a year earlier and 3.92 per cent in the preceding quarter.
Despite the improvement in crude production and oil-sector growth, the sector remained a relatively small component of total economic output.
Non-Oil Economy Accounts for 95.84% of GDP
The non-oil economy continued to account for the overwhelming share of Nigeria’s economic activity.
The non-oil sector represented 95.84 per cent of real GDP during the quarter and grew by 4.31 per cent year-on-year.
The NBS identified agriculture, information and communication, real estate, trade, financial and insurance services, manufacturing and construction among the activities supporting the non-oil economy.
The performance reinforces the growing importance of sectors outside crude oil to Nigeria’s economic expansion.
GDP Growth Still Below 7% Target
Although the latest figures show an improvement in economic activity, the pace of growth remains below the 7 per cent annual growth ambition repeatedly expressed by the Federal Government for 2027.
Nigeria’s economy has nevertheless recorded a gradual improvement in recent years, with annual real GDP growth rising from **3.04 per cent in 2023 to 3.38 per cent in 2024 and 3.87 per cent in 2025.
The Q2 2026 figure represents further progress, but maintaining the momentum will depend on whether investment, production and productivity can continue to improve.
Stronger GDP Does Not Automatically Mean Lower Cost of Living
The increase in GDP does not necessarily mean that Nigerian households will immediately experience better living conditions.
GDP measures the value of economic activity but does not directly show how income is distributed or whether households are experiencing lower prices, higher purchasing power or improved access to essential services.
For many Nigerians, the more important measure of economic recovery will be whether increased production translates into more employment, better incomes, improved business conditions and reduced pressure on household budgets.
The latest figures therefore present a mixed picture: the economy is expanding faster than it did a year ago, while some productive sectors continue to face significant constraints.
The challenge for policymakers will be to sustain the expansion, strengthen industrial production and ensure that economic growth translates into broader improvements in living standards.
