Nigeria’s economy recorded stronger growth momentum in the first quarter of 2026, with several sectors posting significant year-on-year expansions as economic activity improved across energy, telecommunications, entertainment, transport, and industrial production.
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According to the latest GDP data, Nigeria’s economy grew by 3.89% year-on-year in real terms in Q1 2026, higher than the 3.13% recorded in Q1 2025, signaling a faster pace of economic expansion amid improving output in both the services and industrial sectors.
A closer look at sectoral performance shows that the fastest-growing sectors in Q1 2026 were largely driven by rebounds in refining activity, stronger digital connectivity demand, improved infrastructure activity, expanding insurance penetration, and continued recovery in transport-related services.
The ranking also reflects a shift from the list of the Top 10 fastest-growing sectors in Nigeria in 2025 previously published by Nairametrics, as some sectors that experienced weak or volatile growth in 2025 staged sharp recoveries in early 2026.
Fastest-growing sectors in Nigeria — Q1 2026 (real GDP growth)
Motion Pictures, Sound Recording and Music Production — 8.86%
Nigeria’s creative industry remained among the fastest-growing sectors, with motion pictures and music production recording 8.86% growth in Q1 2026.
However, this was slightly below the 9.63% growth posted in Q1 2025.
2025 quarterly trend:
- Q1: 9.63%
- Q2: 4.07%
- Q3: 5.13%
- Q4: 3.60%
- 2025 average: 5.86%
The sector continues to benefit from the global popularity of Afrobeats, Nollywood productions, streaming platforms, and rising international licensing revenues.
Road Transport — 9.64%
Road transport grew by 9.64% in Q1 2026, lower than the 18.46% growth posted in Q1 2025, but still reflecting strong logistics and mobility demand.
Quarterly performance in 2025:
- Q1: 18.46%
- Q2: 24.50%
- Q3: 10.13%
- Q4: 23.86%
- 2025 average: 19.62%
The sector continues to play a central role in Nigeria’s supply chain ecosystem due to limited rail infrastructure and strong dependence on road-based freight movement.
Insurance — 9.94%
Nigeria’s insurance sector expanded by 9.94% in Q1 2026, although this represented a slowdown compared with the exceptionally strong 21.37% growth recorded in Q4 2025.
Quarterly trend in 2025:
- Q1: 7.08%
- Q2: 15.70%
- Q3: 20.78%
- Q4: 21.37%
- 2025 average: 16.04%
Despite the moderation, the sector continues to benefit from rising awareness, corporate policy uptake, and digital insurance distribution channels.
Water Supply, Sewerage, Waste Management and Remediation — 10.32%
This sector recorded 10.32% growth in Q1 2026, slightly higher than the 9.43% growth posted in Q1 2025.
2025 quarterly performance:
- Q1: 9.43%
- Q2: 10.60%
- Q3: 10.26%
- Q4: 9.21%
- 2025 average: 10.01%
The sustained expansion reflects rising urban demand for sanitation services, waste management infrastructure, and environmental remediation projects.
Information and Communication — 10.98%
The broader information and communication sector grew by 10.98% in Q1 2026, up from 7.40% in Q1 2025.
Quarterly trend in 2025:
- Q1: 7.40%
- Q2: 6.61%
- Q3: 5.78%
- Q4: 7.55%
- 2025 average: 6.85%
Growth in this segment reflects the increasing digitization of business operations, stronger demand for internet services, cloud-based solutions, and expanding digital infrastructure investments.
Arts, Entertainment and Recreation — 11.25%
Nigeria’s arts and entertainment industry maintained its strong growth trajectory, expanding by 11.25% in Q1 2026, compared with 9.63% in Q1 2025.
Performance through 2025 remained resilient:
- Q1: 9.63%
- Q2: 7.64%
- Q3: 9.13%
- Q4: 9.30%
- 2025 average: 9.02%
The sector continues to benefit from rising demand for Nigerian music, film, streaming content, concerts, and digital entertainment platforms both locally and internationally.
Cement — 11.53%
The cement sector posted 11.53% growth in Q1 2026, more than double the 4.94% growth recorded in Q1 2025.
Quarterly trend in 2025:
- Q1: 4.94%
- Q2: 4.86%
- Q3: 4.68%
- Q4: 4.12%
- 2025 average: 4.64%
The stronger growth reflects improving construction activity, infrastructure development, and sustained demand for building materials despite elevated costs in the real estate market.
Telecommunications & Information Services — 12.24%
Nigeria’s telecommunications and information services sector continued its steady expansion, recording 12.24% growth in Q1 2026, compared with 7.82% growth in Q1 2025.
Quarterly performance in 2025 showed relatively stable growth:
- Q1: 7.82%
- Q2: 7.39%
- Q3: 6.14%
- Q4: 8.39%
- 2025 average: 7.47%
Growth in the sector continues to be supported by rising internet penetration, data consumption, fintech expansion, digital commerce, and increasing reliance on mobile connectivity by households and businesses.
Quarrying and Other Minerals — 23.41%
The quarrying and minerals sector recorded 23.41% growth in Q1 2026, reversing the 21.55% contraction recorded in the same period last year.
Quarterly trend in 2025 is
- Q1: -21.55%
- Q2: 45.86%
- Q3: 39.49%
- Q4: 32.67%
- Full-year average: 24.12%
The rebound reflects stronger activity in Nigeria’s solid minerals industry, construction-linked quarrying operations, and rising demand for raw materials tied to infrastructure and industrial projects.
Oil Refining — 37.46%
Nigeria’s oil refining sector emerged as the fastest-growing segment of the economy in Q1 2026, recording 37.46% year-on-year growth, a sharp acceleration from the 11.51% growth recorded in Q1 2025.
The sector had a volatile performance through 2025:
- Q1 2025: 11.51%
- Q2 2025: 15.78%
- Q3 2025: 19.42%
- Q4 2025: 12.33%
- 2025 average: 14.08%
The strong rebound in Q1 2026 reflects improving domestic refining activity, supported by increased utilization of refining infrastructure and stronger petroleum product demand. A major driver of this expansion was the continued ramp-up in operations at the Dangote Refinery, which has a nameplate capacity of 650,000 barrels per day and has significantly boosted local refining output.
The sector’s resurgence is particularly significant given Nigeria’s long-standing dependence on imported refined petroleum products, as higher domestic refining capacity could help reduce import reliance, improve energy security, and strengthen value addition within the oil and gas industry.
More Insight
Several other sectors also posted notable growth during the quarter, reinforcing signs of broader economic recovery across the country. Financial services, transportation, construction, pharmaceuticals, and manufacturing-related activities all recorded positive expansions in Q1 2026.
- Financial and insurance activities grew by 8.54% during the quarter.
- Construction recorded 6.38% growth, while chemical and pharmaceutical products expanded by 6.15%.
- Rail transport and pipelines grew by 6.03%, while motor vehicle assembly recorded 5.44% growth.
- Accommodation and food services expanded by 4.36%, supported by improving consumer and business activity.
What you should know
The Q1 2026 sectoral growth pattern highlights several important shifts within the Nigerian economy.
First, the strong rebound in oil refining and quarrying activities suggests renewed momentum in industrial and energy-related production. Second, the continued expansion of telecommunications, digital services, and entertainment reinforces the growing importance of Nigeria’s service economy.
The data also shows that sectors tied to infrastructure, logistics, and urban services are becoming increasingly important as population growth and urbanization continue to reshape economic activity.
While Nigeria’s overall real GDP growth of 3.89% remains moderate relative to the country’s long-term development needs, the improving performance across multiple sectors points to a broader-based recovery compared with the previous year.
