Nigeria’s economy expanded at its fastest pace in five years in the second quarter of 2026, driven by stronger activity in the services and agricultural sectors, according to data from the National Bureau of Statistics (NBS).
The latest figures point to a strengthening recovery as the West African country continues to implement economic reforms aimed at improving macroeconomic stability and attracting investment.
Agriculture emerged as one of the key drivers of growth during the quarter, with output accelerating sharply despite persistent security challenges affecting farming activities in some parts of the country.
The services sector also remained an important source of economic activity, reflecting continued resilience in areas such as trade, finance, telecommunications and other consumer-facing industries.
The stronger second-quarter performance follows growth of 3.89% in the first quarter of 2026. Nigeria’s economy grew by 3.87% in 2025, up from 3.38% in 2024, according to official data.
Oil production also improved during the second quarter, averaging 1.72 million barrels per day compared with 1.55 million bpd in the first quarter, providing additional support to overall economic activity.
The latest growth figures come as President Bola Tinubu’s administration continues to pursue reforms to the foreign exchange market, fuel subsidies and other areas of the economy.
Despite the improved growth outlook, Nigeria continues to face challenges including elevated living costs, inflation, infrastructure gaps and insecurity, which could constrain the pace and breadth of the recovery.
The World Bank has forecast Nigeria’s economy to grow by about 4.2% in 2026, while the government has set a more ambitious target of reaching 7% annual growth by 2027.
The latest data suggest that economic activity is gaining momentum, but sustaining faster growth will depend on whether reforms translate into higher investment, stronger productivity and broader improvements in household incomes and living standards.
