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By Chinwendu Obienyi
Nigeria’s economy grew by 4.43 per cent in real terms in the second quarter of 2026, up from the 4.23 per cent expansion recorded in the corresponding period of 2025, driven by improved performance in agriculture, services, oil production and other non-oil segments.
According to the National Bureau of Statistics (NBS), this was up from 3.89 per cent year-on-year (y/y).
The statistics office said nominal gross domestic product at basic prices rose to N119.29 trillion in the quarter under review, compared with N100.73 trillion in the second quarter of 2025, representing a nominal year-on-year increase of 18.43 per cent.
The growth performance reflected continued resilience in the non-oil economy, which expanded by 4.31 per cent in real terms, compared with 3.64 per cent in the corresponding quarter of 2025 and 3.94 per cent in the first quarter of 2026.
Although the non-oil sector’s contribution to real GDP declined marginally to 95.84 per cebt from 95.95 per cent a year earlier, it remained the dominant source of economic activity. Major drivers included crop production, telecommunications, real estate, trade, financial institutions, cement manufacturing and construction.
The services sector retained its position as the largest contributor to aggregate output, accounting for 56.62 per cent of GDP in the second quarter, marginally higher than the 56.53 per cent contribution recorded in the corresponding period of 2025. The sector grew by 4.60 per cent, accelerating from 3.94 per cent a year earlier.
Agriculture, another major pillar of the economy, expanded by 4.39 per cent in real terms, compared with 2.82 per cent in the second quarter of 2025. The sector’s performance was largely driven by crop production, which accounted for 59.35 per cent of the sector’s nominal value.
The sector contributed 26.15 per cent to real GDP in the second quarter, slightly below its 26.17 per cent share in the corresponding period of the preceding year, but above the 23.16 per cent recorded in the first quarter of 2026.
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Oil-sector activity also improved during the period, supported by higher crude production. Average daily oil output rose to 1.72 million barrels per day, from 1.68 million barrels per day in the second quarter of 2025 and 1.55 million barrels per day in the first quarter of 2026.
The oil sector grew by 7.31 per cent year-on-year in real terms, a moderation from the 20.46 per cent expansion recorded in the corresponding quarter of 2025, but an improvement on the 2.57 per cent growth posted in the preceding quarter. Its contribution to total real GDP increased to 4.16 per cent, from 4.05 per cent a year earlier and 3.92 per cent in the first quarter.
Mining and quarrying expanded by 6.37 per cent in real terms, with crude petroleum and natural gas continuing to dominate the sector. Coal mining and metal ores recorded the strongest nominal growth rates among the sector’s sub-activities.
However, growth in the industry sector slowed to 3.96 per cent, compared with 7.46 per cent in the second quarter of 2025, underlining the uneven nature of the recovery across the economy.
Manufacturing grew by 3.24 per cent in real terms, while construction expanded by 6.75 per cent. Manufacturing’s real contribution to GDP declined to 7.72 per cent, from 7.81 per cent in the second quarter of 2025 and the sector contracted by 15.85 per cent on a quarter-on-quarter basis.
Trade, which remained one of the largest components of economic activity, grew by 2.40 per cent in real terms, compared with 1.29 per cent a year earlier. Its contribution to GDP, however, declined to 17.93 per cent, from 18.28 per cent in the second quarter of 2025.
Financial and insurance services grew by 9.29 per cent in real terms, although this was lower than the rate recorded in the previous year. The sector’s contribution to GDP rose to 3.37 per cent, from 3.23 per cent a year earlier.
The latest GDP figures suggest that Nigeria’s growth recovery is being sustained by services and agriculture, while increased oil production is providing additional support.
Nevertheless, the slowdown in industrial growth and the sharp sequential decline in manufacturing underscore the continued constraints facing producers, including high operating costs, weak consumer purchasing power and infrastructure deficiencies.
