Finance Ministry says stronger performance across manufacturing, agriculture and services signals broader-based economic expansion….
The Federal Government says Nigeria is moving closer to its ambition of building a $1 trillion economy by 2030, following the stronger-than-expected growth recorded in the second quarter of 2026.
The Federal Ministry of Finance made the assessment on Tuesday after the National Bureau of Statistics released its latest Gross Domestic Product figures, showing that the economy expanded by 4.43 per cent in real terms year-on-year in Q2 2026.
The latest growth rate represents an improvement from the 4.23 per cent recorded in the corresponding quarter of 2025 and the 3.89 per cent recorded in the first quarter of 2026.
According to the ministry, the latest performance has also lifted Nigeria’s economic growth for the first half of 2026 above the level recorded during the same period last year.
“The strong Q2 2026 outturn lifted real GDP growth for the first half of 2026 to 4.16 per cent, up from 3.68 per cent in the corresponding period of 2025, a clear signal of sustained strengthening across the economy.”
The ministry said the improvement was particularly significant because economic expansion was becoming more widespread rather than being driven by only a limited number of industries.
It noted that 27 economic subsectors recorded real growth of more than three per cent during the second quarter, compared with 23 subsectors in Q2 2025.
“Growth is also becoming more broad-based. In Q2 2026, 27 economic subsectors recorded real growth above 3.0 per cent, up from 23 subsectors in Q2 2025, showing that expansion is no longer concentrated in a handful of industries.”
The Finance Ministry pointed to stronger performances in manufacturing, agriculture and services as evidence of the broader improvement in economic activity during the quarter.
NBS data showed that the services sector remained the largest contributor to Nigeria’s real GDP, accounting for 56.62 per cent of total output.
Agriculture contributed 26.15 per cent, while the industrial sector accounted for 17.23 per cent.
The ministry said the three major productive areas recorded improvements compared with the same period last year.
“The productive sectors led the way. Manufacturing grew by 3.24 per cent, more than double the 1.60 per cent recorded in Q2 2025, reflecting improved industrial output. Agriculture expanded by 4.39 per cent, up from 2.82 per cent, underscoring stronger production and value-chain performance. Services, the largest driver of growth, expanded by 4.60 per cent, up from 3.94 per cent.”
The oil industry also recorded stronger activity during the quarter.
According to the NBS report, the oil sector expanded by 7.31 per cent year-on-year in Q2 2026, supported by an increase in average crude oil production.
Average crude production rose to 1.72 million barrels per day during the quarter, compared with 1.55 million barrels per day in Q1 2026.
The non-oil sector, meanwhile, grew by 4.31 per cent and remained the dominant component of the economy, accounting for 95.84 per cent of real GDP during the quarter.
The Finance Ministry also attributed part of the increase in Nigeria’s economic value in US dollar terms to the relative stability and appreciation of the naira.
It said the currency gained more than 12 per cent between the first half of 2025 and the corresponding period of 2026.
According to the ministry, the stronger exchange rate contributed to an approximately 17 per cent expansion in the size of the economy when measured in US dollar terms over the period.
“The relative stability and steady appreciation of the exchange rate further amplified these gains in dollar terms. The naira appreciated by more than 12 per cent between H1 2025 and H1 2026, resulting in an expansion of the economy by approximately 17 per cent in U.S. dollar terms over the period, a pace that, if sustained along with the various social programmes of the Government, will meaningfully strengthen dollar incomes, improve purchasing power and lift millions of Nigerians out of poverty.”
The government said the combination of stronger economic growth and exchange-rate stability was creating a more favourable environment for Nigeria to pursue its long-term economic ambitions.
With the latest GDP figures, the Federal Government said Nigeria was better positioned to consolidate its place among Africa’s largest economies and work towards achieving a $1 trillion economy by 2030.
The ministry also pointed to an assessment by the International Monetary Fund, which it said ranked Nigeria among the top 10 contributors to global real GDP growth in 2026.
“Given this momentum, Nigeria is well positioned to consolidate its standing among Africa’s largest economies and to advance toward the Government’s target of a USD 1 trillion economy by 2030. The International Monetary Fund has already ranked Nigeria among the top 10 contributors to global real GDP growth in 2026, projecting the country to account for roughly 1.5 per cent of world growth this year, ahead of several advanced and emerging economies.
“Continued macroeconomic stability, sustained growth across productive sectors, and improving investor confidence would accelerate Nigeria’s progression toward becoming Africa’s largest economy by 2028.”
The latest quarterly figures build on the improvement recorded in Nigeria’s annual economic performance.
NBS data showed that real GDP grew by 3.87 per cent in 2025, compared with 3.38 per cent in 2024.
The 4.43 per cent expansion recorded in Q2 2026 also represented the strongest quarterly growth since the third quarter of 2024.
Despite the stronger headline GDP figure, the latest data showed that growth has not been uniform across all sectors of the economy.
Industrial growth, for instance, slowed to 3.96 per cent in Q2 2026 from 7.46 per cent recorded in the corresponding quarter of 2025.
The electricity, gas, steam and air-conditioning supply sector also remained under pressure, contracting by 10.63 per cent during the quarter.
The continued weakness in some productive sectors highlights the challenges that could affect the pace and sustainability of Nigeria’s economic expansion.
The Finance Ministry, however, said the latest figures demonstrated the importance of maintaining the reform programme and ensuring that stronger macroeconomic indicators eventually translate into tangible improvements in the lives of Nigerians.
“These results underscore the importance of sustaining our reforms and ensuring policy consistency as their benefits begin to reach households across the country. The Government remains focused on accelerating inclusive growth and translating these macroeconomic gains into shared prosperity for every Nigerian family.”
