By Anuoluwapo Oyeniran
Nigeria’s economy recorded stronger growth in the second quarter of 2026, expanding by 4.43 per cent year-on-year, according to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS).
The latest figure represents an improvement from the 3.89 per cent growth recorded in the first quarter of 2026 and the 4.23 per cent recorded in the second quarter of 2025. The performance signals continued expansion in economic activity as the Federal Government’s economic reforms enter another phase.
Oil Sector Records Stronger Performance
One of the notable developments during the quarter was the improvement in Nigeria’s oil sector.
The sector grew by 7.31 per cent year-on-year, a significant increase from the 2.57 per cent recorded in Q1 2026.
Average daily crude oil production also increased to approximately 1.72 million barrels per day, compared with 1.55 million barrels per day in the first quarter and 1.68 million barrels per day during the same period in 2025.
Although oil production improved, the petroleum sector accounted for only 4.16 per cent of real GDP, highlighting the increasingly important role of Nigeria’s non-oil economy.
Non-Oil Sector Remains the Backbone
The non-oil sector continued to dominate Nigeria’s economic output, accounting for 95.84 per cent of real GDP during the quarter.
It grew by 4.31 per cent year-on-year, compared with 3.64 per cent in Q2 2025.
The services sector remained the largest contributor to the economy, accounting for 56.62 per cent of real GDP and recording 4.60 per cent growth.
Agriculture also posted a stronger performance, growing by 4.39 per cent, compared with 2.82 per cent in Q2 2025.
The improvement in agriculture is particularly significant because of the sector’s importance to employment, food production and household incomes across the country.
Industry Growth Remains a Concern
Despite the overall improvement, the industrial sector recorded slower growth.
Industry expanded by 3.96 per cent in Q2 2026, compared with 7.46 per cent during the same quarter of 2025.
The weaker industrial performance suggests that challenges affecting businesses, including production costs, infrastructure constraints, financing conditions and other structural issues, remain important areas requiring attention.
For Nigeria to sustain stronger economic growth, analysts and policymakers will need to ensure that improvements in headline GDP translate into increased productivity, investment and employment across the wider economy.
FG Targets $1 Trillion Economy
Following the release of the latest figures, the Federal Government said the growth performance strengthens its confidence that Nigeria can achieve its ambition of building a $1 trillion economy by 2030.
The government has continued to defend its economic reforms, arguing that measures implemented to stabilise the economy and improve government revenues and investment are necessary to create the foundation for sustainable long-term growth.
However, the latest GDP figures also come with an important question: Is economic growth translating into better living conditions for ordinary Nigerians?
Growth Must Reach Nigerians
While a 4.43 per cent GDP expansion is encouraging, economic growth does not automatically mean that households are immediately better off.
The benefits of growth need to be reflected in areas such as employment, purchasing power, business activity, food security and household incomes.
The government therefore faces the challenge of sustaining economic expansion while ensuring that Nigerians feel its impact in their everyday lives.
Nigeria’s economy has now recorded a stronger quarterly performance, with both oil and non-oil activities contributing to the expansion. The next test will be whether this momentum can be sustained through the remaining quarters of 2026 and converted into broader prosperity for businesses and households.
For now, the 4.43 per cent Q2 growth provides a positive signal for an economy still navigating significant structural and cost-of-living challenges.
