Nigeria’s Economy: NBS unveils 10 fastest-growing sectors in Q2 2026

Nigeria’s economy grew by 4.43 per cent year-on-year in the second quarter of 2026, marking its strongest quarterly growth in five years, according to data from the National Bureau of Statistics (NBS).

The growth was driven by strong performances in several sectors, particularly mining, oil refining and other parts of the non-oil economy.

Coal mining recorded the highest growth rate at 74.89 per cent, followed by oil refining at 43.94 per cent and metal ores at 20.18 per cent.

However, not all sectors grew at the same pace. Some service-related sectors recorded steady growth, while others slowed compared with the previous year.

10. Financial Institutions – 8.35%

Financial institutions grew by 8.35 per cent in Q2 2026, slightly lower than the 8.40 per cent recorded in the first quarter.

The sector recorded much slower growth compared with the 16.18 per cent recorded in Q2 2025.

The slowdown came as the high interest income that supported the banking sector in 2025 began to reduce. However, the ongoing recapitalisation of banks has strengthened their financial position and could support future expansion.

9. Motion Pictures, Sound Recording and Music Production – 9.15%

Nigeria’s film, music and sound production sector grew by 9.15 per cent in Q2 2026, up from 8.86 per cent in Q1.

The sector also performed better than the 4.07 per cent growth recorded in Q2 2025.

The performance shows that Nigeria’s creative industry continues to recover and expand after recording slower growth towards the end of 2025.

8. Telecommunications and Information Services – 10.38%

The telecommunications and information services sector grew by 10.38 per cent in Q2 2026.

Although this was lower than the 12.24 per cent recorded in Q1, it was still higher than the 7.39 per cent recorded in Q2 2025.

Growing demand for mobile data, internet services and digital products continues to support the sector.

7. Water Supply, Sewerage, Waste Management and Remediation – 11.24%

This sector recorded 11.24 per cent growth in Q2 2026, improving from 10.32 per cent in Q1.

Its growth was also slightly higher than the 10.60 per cent recorded in Q2 2025.

The sector has maintained steady growth over recent quarters, remaining above six per cent since early 2024.

6. Arts, Entertainment and Recreation – 11.93%

Arts, entertainment and recreation grew by 11.93 per cent in Q2 2026, compared with 11.25 per cent in Q1.

The sector also recorded a strong improvement from the 7.64 per cent growth recorded in Q2 2025.

The steady performance reflects continued activity in Nigeria’s entertainment, cultural and recreational industries.

5. Cement – 12.75%

Nigeria’s cement sector grew by 12.75 per cent in Q2 2026, up from 11.53 per cent in Q1.

The sector also performed strongly compared with the 4.86 per cent recorded in Q2 2025.

The growth was supported by continued construction and infrastructure projects, as well as increased production capacity by major cement manufacturers.

4. Insurance – 16.13%

The insurance sector recorded 16.13 per cent growth in Q2 2026, rising significantly from 9.94 per cent in Q1.

The sector grew slightly faster than the 15.70 per cent recorded in Q2 2025.

Increased enforcement of compulsory insurance policies, wider corporate insurance coverage and the growth of digital insurance services are helping to drive the sector.

3. Metal Ores – 20.18%

The metal ores sector recorded a strong recovery in Q2 2026, growing by 20.18 per cent after contracting by 8.75 per cent in Q1.

The sector also improved significantly from the 6.96 per cent contraction recorded in Q2 2025.

The rebound suggests increased mining activity and stronger demand for metals used in industrial and construction activities.

2. Oil Refining – 43.94%

Oil refining was Nigeria’s second-fastest-growing sector in Q2 2026, recording 43.94 per cent growth.

The sector grew from 37.46 per cent in Q1 and was significantly higher than the 15.78 per cent recorded in Q2 2025.

The strong performance reflects increased domestic refining capacity, particularly the expansion of the Dangote Refinery, and a gradual reduction in Nigeria’s dependence on imported refined petroleum products.

1. Coal Mining – 74.89%

Coal mining recorded the highest growth among all sectors in Q2 2026, expanding by 74.89 per cent.

This represented a major turnaround from the 9.80 per cent contraction recorded in Q1.

The sector also performed better than the 57.53 per cent growth recorded in Q2 2025.

The sharp increase shows how strongly coal production can respond to changes in power-sector demand and industrial energy needs.

Overall picture

The Q2 2026 GDP figures show that Nigeria’s economy is gaining momentum, but growth remains uneven across sectors.

Mining and energy-related activities recorded the strongest growth, led by coal mining and oil refining. Metal ores also recorded a major recovery.

At the same time, sectors such as telecommunications, insurance, cement, entertainment and financial services continued to record positive growth.

The figures suggest that while Nigeria’s economy is expanding, some sectors remain more volatile than others. The stronger performance in mining and refining also points to the growing importance of domestic production and the non-oil economy in supporting economic growth.

Overall, Nigeria’s 4.43 per cent GDP growth in Q2 2026 represents a stronger economic performance, although the benefits of that growth are not evenly spread across all sectors.