File photo: The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
* Appreciation of the naira contributed to an increase in the size of the economy when measured in US dollar terms.
The Federal Government has said Nigeria’s economy is gaining momentum towards achieving a $1tn Gross Domestic Product by 2030, following the 4.43 per cent growth recorded in the second quarter of 2026.
The Federal Ministry of Finance stated this in a statement issued on Tuesday, following the release of the latest Gross Domestic Product report by the National Bureau of Statistics, which showed that real GDP grew by 4.43 per cent year-on-year in Q2 2026, compared with 4.23 per cent in the corresponding quarter of 2025 and 3.89 per cent in the first quarter of 2026.
The ministry said the performance had also lifted the country’s real GDP growth for the first half of 2026 above the level recorded in the corresponding period of last year.
It stated, “Nigeria’s economy continues to demonstrate resilience and accelerating growth with the second quarter of 2026 real Gross Domestic Product (GDP) expanding by 4.43 per cent year-on-year, up from 4.23 per cent in Q2 2025 and 3.89 per cent in Q1 2026.
“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 also said the expansion was no longer concentrated in a few sectors, noting that more economic subsectors recorded significant growth during the quarter. According to the ministry, 27 subsectors recorded real growth above three per cent in Q2 2026, 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 ministry highlighted the performance of manufacturing, agriculture and services, which all recorded growth during the quarter.
The NBS report showed that the services sector remained the largest contributor to real GDP, accounting for 56.62 per cent, while agriculture contributed 26.15 per cent. The industrial sector accounted for 17.23 per cent of real GDP.
The statement continued, “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 NBS figures also showed that the oil sector grew by 7.31 per cent year-on-year, supported by an increase in average crude oil production to 1.72 million barrels per day in Q2 2026 from 1.55 million barrels per day in the first quarter. The non-oil sector grew by 4.31 per cent and remained dominant, accounting for 95.84 per cent of real GDP.
The Federal Ministry of Finance said the appreciation of the naira had also contributed to an increase in the size of the economy when measured in US dollar terms.
It said, “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 ministry said the latest growth trajectory placed Nigeria in a stronger position to consolidate its position among Africa’s largest economies and pursue the Federal Government’s $1tn economy target.
It added that Nigeria had also been ranked by the International Monetary Fund 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 GDP performance represents an improvement in Nigeria’s economic growth trajectory. The country’s real GDP grew by 3.87 per cent in 2025, compared with 3.38 per cent in 2024, according to NBS data. The Q2 2026 growth rate was also the strongest quarterly expansion since Q3 2024.
However, the latest figures also showed that the recovery remained uneven. Industrial growth slowed to 3.96 per cent in Q2 2026 from 7.46 per cent in the corresponding period of 2025, while electricity, gas, steam and air-conditioning supply contracted by 10.63 per cent.
The ministry, nevertheless, said the latest figures underscored the need to sustain the current momentum and ensure that economic expansion translates into improved living standards.
“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.”
