Nigeria's GDP Grows 3.89% in Q1 2026 Amid Economic Pressures

Nigeria's Gross Domestic Product (GDP) grew by 3.89% year-on-year in Q1 2026, an increase from 3.13% in Q1 2025, indicating economic expansion despite high interest rates and inflationary pressures. The financial sector experienced a growth of 8.54%, with banks recording a combined gross earning of ₦6.84 trillion, a 10.79% increase from ₦6.18 trillion in Q1 2025.

However, profit growth was modest, with profit after tax rising by 6.90% to ₦1.62 trillion. The manufacturing sector expanded by 3.29%, with the cement segment showing a clear link to GDP growth, particularly through Dangote Cement (NGX: DANGCEM), which increased its dividend payout.

The crude petroleum and natural gas sector grew by 2.57%, reflecting a modest contribution to GDP growth, although revenue from oil and gas companies like Seplat (NGX: SEPLAT), Eterna (NGX: ETERNA), and TotalEnergies declined. Overall, the sustainability of this growth remains uncertain due to rising operational costs and broader macroeconomic conditions.