Nigeria’s economy grows 4.43%, FG renews $1trn 2030 target

The Federal Government says Nigeria’s latest economic growth figures have strengthened its confidence in achieving a $1tn economy by 2030.

The government’s optimism followed the release of the National Bureau of Statistics’ (NBS) Gross Domestic Product report, which put real GDP growth at 4.43 per cent year-on-year in the second quarter of 2026.

The figure represents an improvement over the 4.23 per cent recorded in the same quarter of 2025 and the 3.89 per cent growth posted in the first quarter of 2026.

In a statement on Tuesday, the Federal Ministry of Finance said the latest performance raised Nigeria’s average real GDP growth for the first half of 2026 to 4.16 per cent, compared with 3.68 per cent during the corresponding period of 2025.

The ministry attributed the improvement to stronger performances across several areas of the economy, saying growth was becoming increasingly broad-based.

It noted that 27 economic subsectors recorded real growth of more than three per cent in the second quarter, compared with 23 subsectors in Q2 2025.

According to the ministry, manufacturing expanded by 3.24 per cent during the quarter, up from 1.60 per cent a year earlier, while agriculture grew by 4.39 per cent compared with 2.82 per cent in Q2 2025.

The services sector, which remained the biggest component of the economy, also accelerated to 4.60 per cent from 3.94 per cent in the corresponding quarter of last year.

NBS figures showed that services accounted for 56.62 per cent of real GDP, while agriculture contributed 26.15 per cent and industry 17.23 per cent.

The oil sector also recorded stronger growth, expanding by 7.31 per cent year-on-year. Average crude oil production increased to 1.72 million barrels per day during the quarter from 1.55 million barrels per day in Q1 2026.

The non-oil sector, meanwhile, grew by 4.31 per cent and remained the dominant part of the economy, accounting for 95.84 per cent of real GDP.

The Finance Ministry further linked the expansion in the dollar value of the economy to the relative stability and appreciation of the naira.

It said the currency gained more than 12 per cent between the first halves of 2025 and 2026, contributing to an estimated 17 per cent expansion in the size of the economy in US dollar terms over the period.

The government said the combination of sustained economic growth, exchange-rate stability and improved performance across productive sectors could help Nigeria strengthen its position among Africa’s largest economies.

It also cited an International Monetary Fund projection which placed Nigeria among the 10 largest contributors to global real GDP growth in 2026, with the country expected to account for about 1.5 per cent of global growth.

The ministry said maintaining macroeconomic stability, investor confidence and sector-wide growth would be critical to achieving the government’s ambition of becoming Africa’s largest economy by 2028 and reaching the $1tn GDP target by 2030.

Nigeria’s latest performance builds on the 3.87 per cent real GDP growth recorded in 2025, compared with 3.38 per cent in 2024. The Q2 2026 expansion was also the strongest quarterly growth recorded since Q3 2024.

Despite the positive headline figures, the recovery was not uniform across all sectors.

Industrial growth fell to 3.96 per cent in Q2 2026 from 7.46 per cent in the corresponding quarter of 2025, while electricity, gas, steam and air-conditioning supply contracted by 10.63 per cent.

The Finance Ministry said the figures reinforced the need to maintain the pace of reforms and ensure that economic growth translates into tangible improvements in the welfare and purchasing power of Nigerians.