10 Sectors Driving Nigeria’s Economic Growth in 2026

Nigeria’s economy gained stronger momentum in the first quarter of 2026, with several sectors posting impressive year-on-year growth as activity accelerated across energy, telecommunications, entertainment, transportation, and industrial production.

According to the latest GDP data, Nigeria’s real GDP grew by 3.89% year-on-year in Q1 2026, up from 3.13% recorded in Q1 2025, signaling a broader economic recovery driven by stronger performance in both the services and industrial sectors.

A closer look at the numbers reveals that the fastest-growing sectors in Q1 2026 were fueled by rising refining activity, stronger digital connectivity demand, expanding infrastructure projects, improved insurance penetration, and continued recovery in transport-related services.

The latest ranking also highlights a notable shift from the top-performing sectors of 2025, as industries that previously recorded weak or volatile growth rebounded sharply in early 2026.

1. Oil Refining — 37.46%

Nigeria’s oil refining sector emerged as the fastest-growing segment of the economy in Q1 2026, recording a remarkable 37.46% year-on-year growth, compared with 11.51% in Q1 2025.

2025 Quarterly Performance
Q1: 11.51%
Q2: 15.78%
Q3: 19.42%
Q4: 12.33%
2025 Average: 14.08%

The strong rebound reflects improving domestic refining activity, increased utilization of refining infrastructure, and stronger petroleum product demand.

A major driver of this growth is the continued ramp-up of operations at the Dangote Refinery, whose 650,000 barrels-per-day capacity has significantly boosted local refining output.

The sector’s resurgence is particularly significant given Nigeria’s long-standing dependence on imported refined petroleum products. Higher domestic refining capacity could help reduce imports, improve energy security, and strengthen value addition within the oil and gas value chain.

2. Quarrying and Other Minerals — 23.41%

The quarrying and minerals sector recorded 23.41% growth in Q1 2026, reversing the 21.55% contraction recorded during the same period last year.

2025 Quarterly Performance
Q1: -21.55%
Q2: 45.86%
Q3: 39.49%
Q4: 32.67%
2025 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.

3. Telecommunications & Information Services — 12.24%

Nigeria’s telecommunications and information services sector maintained strong momentum, growing by 12.24% in Q1 2026, compared with 7.82% in Q1 2025.

2025 Quarterly Performance
Q1: 7.82%
Q2: 7.39%
Q3: 6.14%
Q4: 8.39%
2025 Average: 7.47%

Growth continues to be supported by rising internet penetration, increased data consumption, fintech expansion, digital commerce, and growing reliance on mobile connectivity by households and businesses.

4. Cement — 11.53%

The cement sector expanded by 11.53% in Q1 2026, more than double the 4.94% growth recorded in Q1 2025.

2025 Quarterly Performance
Q1: 4.94%
Q2: 4.86%
Q3: 4.68%
Q4: 4.12%
2025 Average: 4.64%

The stronger performance reflects improving construction activity, infrastructure development, and sustained demand for building materials despite elevated real estate costs.

5. Arts, Entertainment & Recreation — 11.25%

Nigeria’s arts and entertainment industry continued its strong expansion, recording 11.25% growth in Q1 2026, compared with 9.63% in Q1 2025.

2025 Quarterly Performance
Q1: 9.63%
Q2: 7.64%
Q3: 9.13%
Q4: 9.30%
2025 Average: 9.02%

The sector continues to benefit from growing global demand for Nigerian music, film, concerts, streaming content, and digital entertainment platforms.

6. 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.

2025 Quarterly Performance
Q1: 7.40%
Q2: 6.61%
Q3: 5.78%
Q4: 7.55%
2025 Average: 6.85%

Growth reflects increasing digitization of business operations, stronger demand for internet services, cloud solutions, and rising investments in digital infrastructure.

7. Water Supply, Sewerage, Waste Management & Remediation — 10.32%

This sector recorded 10.32% growth in Q1 2026, slightly above 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.

8. Insurance — 9.94%

Nigeria’s insurance sector grew by 9.94% in Q1 2026, although this represented a slowdown from the exceptionally strong 21.37% growth recorded in Q4 2025.

2025 Quarterly Performance
Q1: 7.08%
Q2: 15.70%
Q3: 20.78%
Q4: 21.37%
2025 Average: 16.04%

Despite moderating growth, the sector continues to benefit from rising awareness, increased corporate policy adoption, and expanding digital insurance distribution channels.

9. Road Transport — 9.64%

Road transport grew by 9.64% in Q1 2026, lower than the 18.46% growth recorded in Q1 2025, but still reflecting strong logistics and mobility demand.

2025 Quarterly Performance
Q1: 18.46%
Q2: 24.50%
Q3: 10.13%
Q4: 23.86%
2025 Average: 19.62%

The sector remains central to Nigeria’s supply chain ecosystem due to limited rail infrastructure and the economy’s heavy dependence on road-based freight movement.

10. Motion Pictures, Sound Recording & Music Production — 8.86%

Nigeria’s creative industry remained among the country’s 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 Performance
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.

Key Takeaways

The Q1 2026 sectoral growth pattern highlights several important shifts within Nigeria’s economy.

First, the strong rebound in oil refining and quarrying signals 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 reshape economic activity across the country.

While Nigeria’s overall GDP growth of 3.89% remains moderate relative to long-term development needs, improving performance across multiple sectors points to a broader and more diversified economic recovery compared with the previous year.