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Over 3% growth in first quarter of Nigerian’s economy

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigeria’s economy recorded a 3.89 per cent year-on-year growth in the first quarter of 2026, reflecting continued resilience despite persistent inflationary pressures and global economic uncertainties, according to the latest national accounts data.

The growth performance was largely driven by the services sector, which maintained its position as the biggest contributor to economic expansion, although the overall GDP growth rate was slightly lower than the level recorded in the preceding quarter.

Economic analysts described the latest figures as evidence that ongoing reforms and increased activity in non-oil sectors are helping to support the country’s economic recovery, even as businesses and households continue to grapple with elevated costs and tight financial conditions.

The services sector, which accounts for more than half of Nigeria’s economic output, led growth during the quarter through strong performances in telecommunications, financial services, information technology, trade, transportation, entertainment and professional services. Increased digital adoption, rising demand for financial technology solutions and expanding telecommunications services continued to boost economic activity across the sector.

Industry experts noted that Nigeria’s growing digital economy remains one of the strongest pillars of growth, attracting investment and creating new opportunities despite broader macroeconomic challenges.

The financial services industry also posted robust growth as banks, fintech firms and other financial institutions benefited from increased transaction volumes, greater digital banking penetration and continued reforms within the financial system.

While the economy expanded during the quarter, the pace of growth moderated slightly compared to the previous quarter, reflecting the impact of inflation, high interest rates and subdued consumer spending. Rising production costs continued to affect manufacturers and small businesses, while households faced pressure from higher food, transportation and utility expenses.

Economists said the marginal slowdown does not necessarily indicate weakening economic fundamentals but rather highlights the challenges associated with the country’s ongoing economic adjustment process.

“The economy is still expanding, but growth remains uneven across sectors. Services continue to carry much of the burden, while other segments of the economy are still recovering from the effects of inflation and structural constraints,” said a Lagos-based economic analyst.

The oil sector also contributed positively to growth as production levels improved compared to previous periods. Government efforts to tackle crude oil theft, pipeline vandalism and operational disruptions have helped stabilize output, supporting export earnings and fiscal revenues.

However, analysts stressed that Nigeria’s long-term economic sustainability will depend on reducing its dependence on oil by accelerating growth in manufacturing, agriculture and other productive sectors.

The agricultural sector recorded moderate growth during the quarter, supported by increased cultivation activities and government interventions aimed at improving food production. Nevertheless, insecurity in some farming regions, climate-related challenges and high input costs continued to constrain the sector’s full potential.

Manufacturing activity showed signs of recovery but remained under pressure from elevated energy costs, exchange-rate volatility and expensive borrowing conditions. Many manufacturers have continued to advocate for policies that lower production costs and improve access to foreign exchange.

The latest GDP data comes as the administration of President Bola Ahmed Tinubu intensifies efforts to implement economic reforms designed to strengthen public finances, attract investment and diversify the economy.

Government officials have repeatedly pointed to improvements in revenue generation, foreign exchange market reforms and infrastructure investments as foundations for stronger medium-term growth. International financial institutions have also projected continued expansion for Nigeria over the next two years, although they caution that inflation, debt servicing costs and global commodity price volatility remain significant risks.

Market observers believe that sustaining growth above 4 per cent will require deeper structural reforms, improved power supply, enhanced security and greater support for private-sector investment.

For investors, the latest GDP figures provide a measure of confidence that Africa’s largest economy remains on a growth trajectory despite ongoing challenges. The strong performance of services highlights the increasing importance of technology, finance and consumer-oriented industries in shaping Nigeria’s economic future.

As policymakers seek to build on recent gains, attention will now turn to whether stronger economic growth can translate into lower inflation, higher employment and improved living standards for millions of Nigerians. While the first-quarter figures suggest continued resilience, economists agree that the ultimate test of economic success will be how quickly growth impacts businesses, jobs and household incomes across the country.

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Business

North African Airline incurs Nigeria’s wrath

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.

The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.

According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.

The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.

Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.

“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.

He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.

According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.

Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.

He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.

The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).

Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.

He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.

The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).

“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.

The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.

 

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₦10m monthly made from akara and bread business -Umo Eno

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Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

 

Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.

Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.

According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.

“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.

The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.

Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.

His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.

The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.

Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.

His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.

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Business

All share index gains about 0.81% as NGX rebounds

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The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.

 

The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.

 

With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.

 

The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.

 

Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.

 

Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.

 

Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.

 

Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.

 

As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.

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