Nigeria's economy demonstrated resilience in the first quarter of 2026, with the National Bureau of Statistics reporting a 3.89% year-on-year GDP growth. This figure is an improvement from the 3.13% recorded in the same period of 2025 and slightly exceeds the 3.87% full-year growth achieved in 2025.

The economic expansion occurred despite prevailing high interest rates, inflationary pressures, and weakened purchasing power. However, for stock market investors, the critical consideration is whether this GDP growth translates into tangible benefits such as increased sector revenue, higher shareholder returns, and sustainable value creation in the market.

The Q1 2026 GDP growth was predominantly fueled by the non-oil sectors of the economy. Key contributors included agriculture, which grew by 3.15%, and manufacturing, which expanded by 3.29%. The construction sector showed robust growth at 6.38%.

Significant advancements were observed in the information and communication sector, which rose by 10.98%, and financial and insurance activities, which grew by 8.54%. Within these, cement manufacturing saw a notable increase of 11.53%, and telecommunications and information services expanded by 12.24%.

In contrast, the oil and gas sector experienced more subdued growth. Crude petroleum and natural gas output increased by 2.57%, while the mining and quarrying sector grew by 1.89%.

The financial services sector, particularly the banking industry, reflected the broader GDP growth. Ten listed banks, excluding FCMB and Sterling Holdings which had not yet released their Q1 results, collectively reported gross earnings of N6.84 trillion. This represents a 10.79% increase compared to the N6.18 trillion earned in Q1 2025.