The National Bureau of Statistics said Nigeria’s Gross Domestic Product growth rate slowed to 3.89 per cent year-on-year in real terms in the first quarter of 2026.

The bureau announced the development in its latest GDP report for Q1 2026 on Monday.

This represents a moderation from the 4.07 per cent growth recorded in the fourth quarter of 2025.

The non-oil sector remained resilient, expanding by 3.94 per cent in Q1 2026, slightly down from 3.99 per cent in the previous quarter. Services led the charge with 4.31 per cent growth, supported by strong performances in information and communication (10.98 per cent), financial and insurance (8.54 per cent), and transportation and storage (7.41 per cent).

Agriculture grew by 3.15 per cent, while the broader industry sector posted 3.50 per cent growth. Manufacturing contributed positively, with notable surges in oil refining (37.46 per cent) and cement production (11.53 per cent).

The oil sector, however, slowed significantly to 2.57 per cent growth from 6.79 per cent in Q4 2025. Average daily crude oil production stood at 1.55 million barrels per day, lower than previous levels and impacted by challenges such as aged infrastructure and oil theft.

Economists had anticipated stronger growth for early 2026, with institutions like the IMF and World Bank projecting around 4.1 to 4.4 per cent for the full year, driven by ongoing reforms, fiscal prudence, and non-oil diversification.

The Q1 outcome fell slightly below some pre-release expectations of approximately 4.0 per cent or higher, highlighting vulnerabilities in the oil sector despite broader economic stabilization efforts under the current administration.

This growth rate is higher than the 3.13 per cent recorded in Q1 2025, indicating some year-on-year improvement even as quarterly momentum eased.