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, 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, Eterna, and TotalEnergies declined. Overall, the sustainability of this growth remains uncertain due to rising operational costs and broader macroeconomic conditions.