Nigeria Growth Moderates to 3.89% as Oil Sector Weakens While Non-Oil Economy Holds Firm

May 26, 2026

Mintesinot Nigussie

Nigeria’s economy recorded slower expansion in the first quarter, with gross domestic product rising 3.89% year-on-year in the three months to March, according to data released by the National Bureau of Statistics.

The latest figures show a decline in momentum from the previous quarter, when growth stood at 4.07%. A key factor behind the slowdown was weaker performance in the oil industry.

Even as the energy sector lost strength, activity across non-oil industries continued to underpin the economy, with services, trade, telecommunications and other domestic sectors helping sustain overall expansion.

This pattern reflects a growing reliance on non-oil segments to support national output. Recent policy efforts have focused on improving investment conditions and strengthening crude output.

The quarterly data highlights the continuing role of diversification in shaping Nigeria’s growth trajectory, as non-oil industries increasingly offset volatility in the energy sector.