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.

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The report identifies infrastructure deficits, policy inconsistencies, and security risks as the most critical bottlenecks undermining the smooth flow of goods across the country.

Nigeria has about 195,000 kilometres of roads, but only a small fraction is paved, driving up transportation costs by as much as 40% and increasing the final price of goods by up to 30%.

In agriculture, where the sector contributes roughly 25% of GDP and employs over 35% of the workforce, weak logistics and storage systems result in post-harvest losses of up to 40% for crops such as tomatoes and maize.

he report notes that smallholder farmers, who produce 80–90% of Nigeria’s food, are disproportionately affected, limiting food security and income growth.

The manufacturing sector has also suffered heavily. SCM failures, combined with energy instability and logistics costs exacerbated by the 2023 fuel subsidy removal, have contributed to factory shutdowns and the loss of an estimated 1.5 million manufacturing jobs.

Despite these challenges, the report argues that targeted investments in roads, ports, cold-chain infrastructure, and digital logistics systems could unlock significant economic value.

Improved SCM efficiency alone could add billions of dollars to national output while reducing inflationary pressures driven by high distribution costs.

… 200,000 barrels of crude lost daily

Nigeria’s oil and gas supply chains, responsible for about 90% of the country’s foreign exchange earnings, are bleeding value due to theft, vandalism, and logistical delays.

The Rome Business School Nigeria report reveals that crude oil theft and illegal bunkering account for losses of approximately 200,000 barrels per day, while upstream operators face customs delays that inflate operating costs by 20–30%.

These inefficiencies weaken government revenues and reduce investor confidence in the sector.

Maritime logistics remain another major pressure point. Nigeria relies on sea transport for over 95% of exports and 97% of imports, with Lagos ports, particularly Apapa, handling around 42% of inbound cargo.

Yet port congestion, outdated customs procedures, and manual documentation systems cost businesses an estimated $4 billion annually in demurrage.

To address these challenges, the Nigerian Customs Service launched the Authorized Economic Operator (AEO) programme in 2025, aimed at fast-tracking clearance for trusted traders and improving supply chain security. The report notes that such reforms, if fully digitised and scaled, could significantly reduce dwell time and logistics costs.

Beyond oil, improved SCM could strengthen non-oil exports, especially in agriculture and manufacturing, reducing Nigeria’s historic dependence on petroleum revenues and stabilising foreign exchange inflows.

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The report revealed that the telecom giant contributed N549.3 billion in taxes and levies to the Nigerian government, owing to its strategic focus on sustainability. 

As part of its goal to enhance digital inclusion across the country, the company expanded its network coverage to 92.9% nationwide, providing connectivity to 79.7 million people and invested over N571.0 billion in capital expenditure (capex) during 2023.

Beyond the numbers, MTN’s corporate citizen initiative encompasses various sectors of the economy, working towards long-term development and stability in Nigeria.

In line with this strategy, the telecom giant increased its capital expenditure by 13.2%, investing N571 billion in 2023. This investment enhances network capacity and quality as well as drives innovation and growth within Nigeria’s digital space.

Despite a challenging economic environment, part of which includes net forex losses resulting in a N137 billion loss after tax, MTN Nigeria reported a resilient service revenue of N2.46 trillion for the year.

MTN Nigeria has also set a precedent by being among the first in Nigeria to adopt the International Financial Reporting Standards S1 and S2, issued by the International Sustainability Standards Board (ISSB), reiterating transparency and accountability in reporting.

MTN’s technological advancements are not excluded, with 4G coverage reaching 81.5% and 5G coverage expanding to 11.3% in 2023. These developments are essential for driving digital growth and stimulating innovation across Nigeria.

The company’s fintech business has seen considerable growth as well, serving over 14.5 million customers nationwide. Its partnership with Mastercard further enhances its fintech arm, promoting financial inclusion and digital progress.

MTN’s focus on environmental sustainability is seen in its Project Zero initiative, which aims to achieve net zero emissions by 2040. The company has already made big waves, reducing Scope 1 and 2 emissions and embedding ESG considerations into its governance structure.

On its corporate social responsibility, the company invested N2.6 billion in Corporate Social Investment programs in 2023, positively impacting over 58,000 lives through the MTN Foundation.

Karl Toriola, Chief Executive Officer of MTN Nigeria, commended the company’s progress and noted its future goals, stating, “We’re proud of the progress we’ve made so far expanding connectivity to 79.7 million people, achieving 92.9% nationwide coverage, investing N2.6 billion in Corporate Social Investment programmes that have impacted over 58,000 lives through the MTN Foundation, contributing N549.3 billion in taxes and levies to the government, and investing over N571.0 billion in capex, up 13.2% in 2023.

However, we recognise that this is only the beginning. We remain steadfast in our pursuit of excellence and committed to continuously improving our sustainability practices while striving for an even greater impact in the communities we serve. Our goal is to set the benchmark for responsible business practices in Nigeria, and we will continue to ensure our operations positively impact the environment, society, and governance.”

Tobe Okigbo, Chief Corporate Services and Sustainability Officer, highlighted MTN’s ESG focus, noting, “We have embedded sustainability and ESG considerations at the core of our governance structure, recognising their critical role in driving long-term value creation for our stakeholders. 

Our commitment to sustainability is reflected in our actions, from establishing a dedicated Sustainability and Shared Value function to adopting the IFRS Sustainability Reporting Standards. We are pleased with our progress so far, including achieving a reputation index score of 84, up 3.0pp from 2022 and achieving a 10.3% reduction in Scope 1 and 2 emissions from the 2021 baseline as part of the Project Zero initiative, progressing towards net zero emissions by 2040.”

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