Nigeria Q1 2026 GDP rises 3.89% as power woes persist

Nigeria’s economy grew by 3.89 percent in the first quarter of 2026, an improvement from the same period last year, but economists warn that persistent structural weaknesses, including a severe power crisis and fragile industrial growth, threaten the sustainability of the recovery. The latest data from the National Bureau of Statistics shows expansion was driven by strong performances in services, trade, and refining, while the oil sector slowed and electricity supply contracted sharply.

The services sector remained the strongest pillar, contributing 57.73 percent to GDP, with information and communication technology, financial services, and entertainment posting double-digit growth. Trade emerged as the single largest contributor at 17.89 percent, a development attributed by analysts to improved exchange rate stability and easing inflation. The petroleum refining sector recorded exceptional growth of 37.46 percent, largely driven by domestic operations, which are reducing import dependence and conserving foreign exchange.

However, the Centre for the Promotion of Private Enterprise, which analyzed the report, highlighted deep concerns. Manufacturing, though improved, still...