NIGERIA’S ECONOMY EXPANDS 4.43% AS SERVICES, AGRICULTURE DRIVE Q2 GROWTH

Nigeria’s real Gross Domestic Product expanded by 4.43 per cent in the second quarter of 2026, with the services and agricultural sectors emerging as major contributors to the latest improvement in economic activity.

The figure represents an increase from the 4.23 per cent recorded in the corresponding quarter of 2025, according to the latest GDP report released by the National Bureau of Statistics. In nominal terms, real GDP increased from N51.20tn in the second quarter of 2025 to N53.47tn in Q2 2026.

The services sector remained the largest contributor to Nigeria’s economic output during the period, recording year-on-year growth of 4.60 per cent, compared with 3.94 per cent in the same quarter of the previous year.

Agriculture also recorded a notable improvement, growing by 4.39 per cent year-on-year, compared with 2.82 per cent in Q2 2025 and 3.15 per cent in the first quarter of 2026.

On a quarter-on-quarter basis, agricultural production increased by 17.80 per cent, pushing the sector’s contribution to real GDP to 26.15 per cent during the quarter.

The oil sector provided additional support to the economy, growing by 7.31 per cent year-on-year. Average daily crude oil production rose to 1.72 million barrels per day from 1.68 million barrels per day recorded in Q2 2025.

The non-oil sector also performed better, recording 4.31 per cent growth compared with 3.64 per cent in the same period last year. The NBS identified crop production, telecommunications, real estate, trade, financial services, manufacturing and construction among the key drivers.

Despite the overall improvement, the industrial sector continued to face significant challenges. Its growth slowed to 3.96 per cent from 7.46 per cent recorded in Q2 2025, with stakeholders blaming persistent electricity shortages, inadequate infrastructure and limited access to affordable credit.

The Lagos Chamber of Commerce and Industry welcomed the latest figures, describing the growth as encouraging while urging the government to maintain consistency in its economic policies.

The National Association of Small-Scale Industrialists similarly acknowledged the improvement but warned that high electricity costs and expensive credit continued to place manufacturers under pressure.

Economist Ayo Teriba attributed the expansion partly to improved liquidity in the economy, saying greater availability of funds and improved foreign exchange conditions had helped create an environment capable of supporting investment and economic activity.

Another economist, Muda Yusuf, said the improved agricultural performance was particularly significant because of the sector’s importance to employment and food security.

Trade was the largest individual contributor to real GDP during the quarter, accounting for 17.93 per cent, followed by crop production with 17.66 per cent and real estate with 12.71 per cent. Telecommunications and information services contributed 9.72 per cent, while livestock accounted for 6.04 per cent.

Crude petroleum and natural gas contributed 4.16 per cent, while construction, financial institutions, food and beverage manufacturing and public administration also made notable contributions.

Stakeholders, however, stressed that sustaining the current growth trajectory would require continued reforms, improved infrastructure, lower borrowing costs and greater support for productive sectors.

With services and agriculture driving much of the latest expansion, economists said the government would need to strengthen these sectors while addressing the structural problems holding back industrial production if Nigeria is to achieve broader and more sustainable economic growth.