Nigeria’s economy expanded 3.9% year on year in the first quarter (Q1) of 2026, up from 3.1% a year earlier, as both oil and non-oil activity improved, according to the National Bureau of Statistics (NBS).
The oil sector grew 2.6% in the period, while the non-oil economy expanded 3.9%. That compares with growth of 1.9% and 3.2%, respectively, in the same quarter of 2025.
Sector Breakdown
The non-oil economy remained the dominant driver of output, accounting for 96.08% of GDP in the quarter, while oil contributed 3.92%. Within the non-oil segment, services remained the largest component, making up 57.73% of output.
Agriculture accounted for 23.16% of GDP, while industries excluding oil contributed 19.11%. The composition highlights how services continue to anchor economic activity, even as agriculture and industrial output retain sizable weight in the overall economy.
The ICT Sector expanded 10.99% Year-on-Year (Y/Y), Financial Services and Insurance was up 8.54% Y/Y, Transportation and Storage grew 7.41% and Agriculture 3.15% Y/Y.
Economic Read-Through
The data point to a more resilient start to the year, with growth broadening beyond oil. That matters for policymakers because it suggests the economy is becoming less dependent on crude output alone, even though oil still plays an important role in export earnings and fiscal revenue.
A 3.9% expansion also supports the case that Nigeria is sustaining momentum despite inflationary pressures and still-tight financing conditions. The challenge for the rest of the year will be whether the pace can hold if consumer demand weakens or if oil production loses steam.
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