Nigeria Economic Snapshot January 2026

Nigeria's GDP growth in 2025 shows a clear upward trend, rising from 3.13% in Ql to 4.23% in Q2, before moderating to 3.98% in Q3, which is 0.12 percentage points higher than Q3 2024.This sustained growth was driven mainly by the non-oil sector, which accounted for over 96% of real output, with sector wide gains in agriculture, industry, and services. This growth rate aligns IMF's October 2025 upward revision of Nigeria's GDP growth forecast to 3.9% in 2025 and 4.2°k in 2026, supported by improved oil production, stronger investor confidence, and a more supportive fiscal stance. However, persistent inflation and structural bottlenecks in the power, transport and security sectors highlight the need for diversification into manufacturing, agriculture and digital services, alongside macroeconomic and regulatory reforms to sustain economic recovery.

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