Nigeria's Power Sector Contracts 10.63% in Q2 2026

Nigeria's electricity, gas, steam, and air-conditioning supply sector experienced a contraction of 10.63% year-on-year in real terms during the second quarter of 2026, according to the National Bureau of Statistics (NBS). This decline follows a 15.30% decrease recorded in the first quarter of 2026, indicating ongoing challenges within this critical infrastructure sector.

In contrast, the overall economy grew by 4.43% in real terms in Q2 2026, an increase from 4.23% in the same quarter of 2025. Despite a rise in the sector's nominal value, the real output continued to decline, suggesting that higher nominal figures have not led to improved sector activity.

Electricity supply remains a significant constraint for manufacturers, businesses, and households, who rely on both the national grid and alternative power sources. The sector generated N62.12 billion in Company Income Tax (CIT) in 2025, underscoring its economic significance.