Nigeria’s economy grew by 4.43 per cent year-on-year in real terms in the second quarter of 2026, according to the National Bureau of Statistics (NBS).

The latest growth rate is higher than the 4.23 per cent recorded in the corresponding quarter of 2025 and represents an improvement from the 3.89 per cent recorded in the first quarter of 2026.

The NBS disclosed this in its Gross Domestic Product Report for the second quarter of 2026, released on Monday.

The latest figure indicates that economic activity continued to expand during the quarter, extending a gradual recovery recorded over the past year.

Nigeria’s economy grew by 3.87 per cent in real terms in 2025, compared with 3.38 per cent in 2024, according to the NBS data.

The latest quarterly performance was also the strongest growth recorded since the third quarter of 2024, when the economy expanded by 3.86 per cent, based on the NBS quarterly series.

In nominal terms, the country’s GDP stood at ₦119.29 trillion in the second quarter of 2026, while real GDP was estimated at ₦53.47 trillion.

The improvement came as both the oil and non-oil sectors recorded stronger growth compared with the preceding quarter, although the contribution of the non-oil economy remained overwhelmingly dominant.

Services remain dominant

The services sector remained the largest contributor to Nigeria’s real GDP during the quarter, accounting for 56.62 per cent of total output.

It also recorded real growth of 4.60 per cent, up from 3.94 per cent in the corresponding quarter of 2025.

Agriculture contributed 26.15 per cent to real GDP and grew by 4.39 per cent, a significant improvement from the 2.82 per cent recorded in the second quarter of 2025.

The improvement in agriculture is notable, as the sector remains an important source of employment and income for millions of Nigerians, even as farmers continue to contend with insecurity, high input costs, climate-related pressures, and infrastructure constraints.

The industrial sector, however, recorded slower growth.

Industry grew by 3.96 per cent in the second quarter, compared with 7.46 per cent in the corresponding period of 2025. It accounted for 17.23 per cent of real GDP during the quarter.

The slowdown means that the stronger headline GDP figure was not reflected uniformly across all major sectors of the economy.

Oil production rises

Meanwhile, the oil sector recorded a stronger performance during the quarter, aided by higher crude oil production.

Nigeria’s average daily oil production rose to 1.72 million barrels per day (bpd) in the second quarter, from 1.55 million bpd in the first quarter of 2026.

Production was also higher than the 1.68 million bpd recorded in the second quarter of 2025.

The increase in production coincided with stronger growth in the oil sector.

The sector grew by 7.31 per cent year-on-year in real terms, compared with 2.57 per cent in the first quarter of 2026. On a quarter-on-quarter basis, oil-sector growth stood at 10.91 per cent.

Despite the improvement, oil remained a relatively small part of Nigeria’s overall economic output.

The sector contributed 4.16 per cent to real GDP in the second quarter, up from 4.05 per cent in the corresponding quarter of 2025 and 3.92 per cent in the first quarter of 2026.

By contrast, the non-oil sector accounted for 95.84 per cent of real GDP.

The non-oil sector grew by 4.31 per cent in real terms during the quarter, compared with 3.64 per cent in the second quarter of 2025 and 3.94 per cent in the first quarter of 2026.

According to the NBS, agriculture, information and communication, real estate, trade, financial and insurance services, manufacturing and construction were among the activities that supported non-oil growth during the quarter.

Growth improves but remains moderate

The latest GDP figures suggest that Nigeria’s economy is gaining momentum, but the pace of expansion remains moderate relative to the country’s development needs.

President Bola Tinubu’s administration has repeatedly set a target of achieving 7 per cent annual economic growth by 2027. The 4.43 per cent quarterly growth, therefore, remains below the pace required to reach that broader target if sustained annual growth is the benchmark.

The economy has nevertheless recorded a gradual improvement since the contraction and weak growth rates that characterised earlier years.

The annual growth rate rose from 0.95 per cent in 2021 to 4.32 per cent in 2022, before moderating to 3.04 per cent in 2023. It then increased to 3.38 per cent in 2024 and 3.87 per cent in 2025, according to the NBS data.

The latest figures, therefore, point to a continued, although still gradual, strengthening of economic activity.

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However, stronger GDP growth does not necessarily mean that households are immediately experiencing improved living standards.

GDP measures the value of goods and services produced in the economy and does not, on its own, show how income is distributed or whether households can afford basic goods and services.

For Nigerians, the impact of the latest expansion will ultimately depend on whether stronger economic activity translates into more jobs, higher incomes, increased investment and lower production and living costs.

The continued dominance of services and the improved performance of agriculture also highlight the growing importance of the non-oil economy to Nigeria’s growth story.

At the same time, the slowdown in industrial growth shows that challenges related to electricity, financing, infrastructure, logistics, and production costs continue to weigh on the productive sectors.

The latest NBS figures provide further evidence that the Nigerian economy is expanding faster than a year ago.

The bigger test, however, will be whether that growth can be sustained and broadened across productive sectors and translate into tangible improvements in Nigerians’ economic well-being.