At the same time, total capital importation into Nigeria rose to $10.37 billion, an 83.8% increase compared with the same period in 2025. This is also a 61% rise from the previous quarter.

Telecoms barely registered in the inflow mix, while banking and finance absorbed most of the funds entering the country.

Banking alone pulled in $7.55 billion, while the financing sector followed with $2.43 billion. Together, they accounted for more than 96% of total inflows.

Most of the capital entering the country came through short-term instruments. Portfolio investment topped the list with about 95% of total inflows, and foreign direct investment small at $135 million, or roughly 1.3%.

Telecoms, by comparison, attracted just 0.07% of total inflows, trailing even trading, agriculture, IT services and equities.

The decline in the sector stands out when set against recent years. Telecom capital importation reached $496.27 million in 2025, while it stood at $456.59 million in 2024. In 2023, it dropped to $134.75 million, before rising again in 2022 to $456.83 million.

A steep drop was recorded in the latest quarterly figures as seen. Inflows fell 91% year-on-year from $80.78 million in Q1 2025 and also dropped 93% from $103.36 million in the previous quarter.

Policy changes in the sector have not shifted investor behaviour. Early in 2025, the Nigerian Communications Commission approved a 50% tariff adjustment for operators with an aim to improve revenue and support network expansion.

Operators also increased spending. The commission said telecom companies invested more than N2.5 trillion in infrastructure in 2025. That is over $1 billion in network upgrades.

Even so, foreign inflows did not follow, as investors appear more focused on fixed-income returns than long-term infrastructure commitments. High yields in money market instruments and bonds continue to draw capital.

This means money is coming in, but not where long-term investment is most needed.

Foreign exchange reforms have helped strengthen activity in banking. Still, volatility in the currency market still weighs on long-term decisions, especially in sectors like telecoms that require steady capital planning.

The International Finance Corporation and the World Bank have in past reports pointed to the need for stable, long-term investment conditions in infrastructure-heavy sectors. That gap is very much visible in the current data.

Heavy dependence on short-term inflows leaves productive sectors exposed. Telecoms, manufacturing and agriculture all receive limited foreign capital.

These risks must be looked into as foreign investment in Nigeria drives growth for telecom, banking and many other sectors.

New figures released on Monday by the National Bureau of Statistics showed the economy grew faster than the 3.13% recorded in the same period of 2025. 

Still, growth slowed slightly from the 3.99% posted in the fourth quarter of 2025.

The report points to resilience in the non-oil sector, even as crude oil production weakened during the quarter.

Agriculture recorded one of the strongest improvements. The sector grew by 3.15% in real terms, compared with just 0.07% in the first quarter of last year. Crop production was the biggest driver within the sector.

Services were the largest part of the economy, contributing 57.73% to total GDP. The sector expanded by 4.31% during the quarter, although that was slightly below the 4.33% growth recorded a year earlier.

Industry also improved moderately, growing by 3.50% from 3.42% in the corresponding period of 2025.

Nigeria’s non-oil sector continued to carry most of the economy. According to the NBS, the sector grew by 3.94% in real terms and accounted for 96.08% of total GDP in the quarter.

Telecommunications, crop production, trade, cement manufacturing, financial institutions, real estate, construction and road transport were among the sectors that supported growth.

Telecommunications was one of the strongest performers. Information and communication activities grew by 10.98% year-on-year and contributed 11.31% to real GDP, higher than the 10.59% recorded in the same quarter of 2025.

Trade contributed 17.89% to real GDP, while real estate accounted for 13.10%. The finance and insurance sector grew by 8.54%, and construction expanded by 6.38%.

In nominal terms, the country’s GDP stood at N110.79 trillion in the first quarter of 2026. That represents a 17.79% increase from the N94.05 trillion recorded in the same period last year.

Oil production, however, was under stress. Average daily crude oil output fell to 1.55 million barrels per day, lower than the 1.62 million barrels per day recorded in the first quarter of 2025. Production also dropped slightly from the 1.58 million barrels per day posted in the previous quarter.

Even with weaker output, the oil sector still recorded real growth of 2.57%, up from 1.87% a year earlier. Its contribution to total real GDP stood at 3.92%, slightly below the 3.97% recorded in the corresponding quarter of 2025.

The report also showed mixed performances across other sectors. Arts, entertainment and recreation recorded strong growth of 11.25%. On the other hand, electricity, gas, steam and air conditioning supply contracted by 15.30% in real terms.

Education growth slowed to 1.22%, down from 2.47% in the same period last year.

Nigeria is currently dealing with high inflation, expensive living costs and pressure on household spending. Inflation has remained above 15% despite ongoing reforms aimed at stabilising the economy.

Since 2025, the federal government has pushed ahead with policies including fuel subsidy removal, exchange rate unification and fiscal reforms as it tries to strengthen public finances and attract investment.

Compared with some African economies, Nigeria’s latest GDP growth figure placed it ahead of South Africa, where growth slowed to 1.9% in the same period. Ghana recorded 3.5% growth in the first quarter of 2026.