Nigeria GDP Grows 3.2% in Q1 2026 — NBS Report Confirms Economic Recovery
The National Bureau of Statistics has confirmed Nigeria's economy expanded by 3.2% in the first quarter of 2026, reflecting a broad-based recovery driven by the oil sector and renewed consumer spending.
Nigeria's economy grew at a rate of 3.2 per cent in the first quarter of 2026, the National Bureau of Statistics (NBS) has confirmed in its latest GDP report, signalling continued recovery from the turbulence of the past three years.
The figure marks an improvement from the 2.7 per cent growth recorded in Q4 2025 and is the strongest quarterly performance since Q2 2024.
**Drivers of Growth**
Oil production contributed significantly to the upturn, with crude output climbing above 1.5 million barrels per day for the first time since 2020. The services sector also showed notable expansion, driven by financial services, telecommunications, and retail trade.
The non-oil sector grew by 2.4 per cent in the quarter, a sign that economic activity is broadening beyond petroleum — a structural shift that economists have long called necessary for sustainable development.
**Inflation Remains a Challenge**
Despite the positive growth numbers, the NBS report noted that inflation continues to erode purchasing power for many Nigerian households. Annual inflation stood at 31.6 per cent as of March 2026, up from the previous year but moderating from its 2024 peak.
Economists say the growth is welcome but cautioned that real incomes for ordinary Nigerians have not yet recovered to pre-reform levels.
**Business and Investor Reaction**
The report was greeted with cautious optimism by the business community. Several major investors cited the GDP data as reinforcing their confidence in Nigeria's medium-term prospects, even as they noted ongoing challenges related to infrastructure, regulation, and currency stability.
**Government Response**
President Tinubu's economic team hailed the figures as validation of reform policies introduced since 2023. The Minister of Finance said the government would maintain its fiscal discipline while expanding social investment programmes to ensure growth is more inclusive.
The next quarterly GDP report is expected in late September.