Nigeria’s economy accelerates, on track towards a $1trn GDP – FMF
… says manufacturing grew by 3.24 %By Innocent Anaba
Th Federal Ministry of Finance, Tuesday, said Nigeria’s economy continues to demonstrate resilience and accelerating growth with the second quarter of 2026 real Gross Domestic Product (GDP) expanding by 4.43 percent year-on-year, up from 4.23 per cent in Q2 2025 and 3.89 percent in Q1 2026.
The Ministry in a statement, said: “The strong Q2 2026 outturn lifted real GDP growth for the first half of 2026 to 4.16 percent, up from 3.68 percent in the corresponding period of 2025, a clear signal of sustained strengthening across the economy.
“Growth is also becoming more broad-based. In Q2 2026, 27 economic subsectors recorded real growth above 3.0 percent, up from 23 subsectors in Q2 2025, showing that expansion is no longer concentrated in a handful of industries.
“The productive sectors led the way. Manufacturing grew by 3.24 percent, more than double the 1.60 percent recorded in Q2 2025, reflecting improved industrial output. Agriculture expanded by 4.39 percent, up from 2.82 percent, underscoring stronger production and value-chain performance. Services, the largest driver of growth, expanded by 4.60 percent, up from 3.94 percent.
“The relative stability and steady appreciation of the exchange rate further amplified these gains in dollar terms. The naira appreciated by more than 12 percent between H1 2025 and H1 2026, resulting in an expansion of the economy by approximately 17 percent in U.S. dollar terms over the period, a pace that, if sustained along with the various social programmes of the government, will meaningfully strengthen dollar incomes, improve purchasing power and lift millions of Nigerians out of poverty.
“Given this momentum, Nigeria is well positioned to consolidate its standing among Africa’s largest economies and to advance toward the government’s target of a USD 1 trillion economy by 2030. The International Monetary Fund has already ranked Nigeria among the top 10 contributors to global real GDP growth in 2026, projecting the country to account for roughly 1.5 percent of world growth this year, ahead of several advanced and emerging economies.
“Continued macroeconomic stability, sustained growth across productive sectors, and improving investor confidence would accelerate Nigeria’s progression toward becoming Africa’s largest economy by 2028.
“These results underscore the importance of sustaining our reforms and ensuring policy consistency as their benefits begin to reach households across the country. The government remains focused on accelerating inclusive growth and translating these macroeconomic gains into shared prosperity for every Nigerian family,” the statement added.
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