Nigeria posts fastest growth in five years on oil boom

Nigeria's economy grew 4.43% year-on-year in Q2 2026, the fastest quarterly expansion since Q2 2021, accelerating from 3.89% in Q1 2026. In nominal terms, GDP stood at ₦119.29 trillion during the quarter. And crucially, faster than population growth for the first time in a long time.

The oil-sector growth accelerated to 7.31% year-on-year, compared with 2.57% in the previous quarter. Average daily production rose to 1.72 million barrels per day in Q2, from 1.55 million bpd in Q1, as higher oil prices and supply constraints stemming from the US-Iran conflict supported activity.

Agriculture expanded 4.39%, while services grew 4.60%. Despite the improvement, oil accounted for only 4.16% of real GDP, while the non-oil sector contributed 95.84%.

The State of the Nigerian Economy

Growth is broadening. 27 economic subsectors recorded real growth above 3.0% in Q2 2026, up from 23 subsectors in Q2 2025, signalling expansion beyond oil.

For Nigerian investors, non-oil growth of 4.31% offers a better indication of whether economic activity is spreading beyond crude production. Telecoms (MTNN, AIRTELAFRI), agriculture, and financial services (ZENITHBANK, GTCO, UBA) remain the key sectors driving diversification.

What to look out for

Industry grew just 3.96% in Q2, down sharply from 7.46% a year earlier. Watch whether manufacturing and construction can regain momentum in H2 2026, and whether sustained oil output above 1.7 million bpd can hold in the face of global supply shifts.