Nigeria economic growth slows slightly in first quarter of 2026

Monday 25 May 2026 - 15:45

The economy of Nigeria recorded a slight slowdown in the first quarter of 2026, reflecting weaker performance in both the oil and non-oil sectors compared with the previous quarter.

According to official data released by the National Bureau of Statistics, Nigeria’s Gross Domestic Product (GDP) grew by 3.89% year-on-year in the first quarter of 2026. This represents a marginal decline compared to the 4.07% growth recorded in the final quarter of 2025.

Economic analysts note that the slowdown highlights ongoing structural challenges, despite recent reforms aimed at stabilizing the economy and improving fiscal performance.

Since taking office in 2023, President Bola Tinubu has implemented a series of major economic reforms, including the removal of fuel subsidies, adjustments to the currency system, and tax restructuring measures. These policies are designed to strengthen public finances and encourage long-term economic growth.

While these reforms have contributed to some improvement in macroeconomic stability, the country is still working toward its long-term growth target of around 7% annually, a level considered necessary to match population expansion and reduce unemployment.

The oil sector, one of the key drivers of the Nigerian economy, recorded slightly lower production levels during the first quarter of the year. Non-oil industries also showed slower expansion, reflecting broader global economic pressures and domestic constraints.

Nigeria remains Africa’s largest economy and most populous nation, making its economic performance a key indicator for regional development trends. Despite the slowdown, overall growth remains positive compared to previous years.

The government continues to focus on attracting foreign investment, improving infrastructure, and diversifying the economy away from oil dependency. Analysts suggest that sustained reforms will be necessary to maintain long-term growth momentum.