FG Targets $1tr Economy As GDP Growth Hits 4.43%

The Federal Government has renewed its optimism about achieving a $1 trillion economy by 2030 following stronger economic growth in the second quarter of 2026.

The Federal Ministry of Finance said the latest Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS) showed that real GDP expanded by 4.43 per cent year-on-year in Q2 2026.

The growth rate was higher than the 4.23 per cent recorded in the corresponding quarter of 2025 and the 3.89 per cent achieved in the first quarter of 2026.

According to the ministry, the latest performance pushed real GDP growth for the first half of 2026 to 4.16 per cent, compared with 3.68 per cent recorded in the same period of 2025.

It said the figures indicated that the economy was experiencing broader-based growth, with 27 economic subsectors recording real growth above three per cent during the quarter, compared with 23 subsectors in Q2 2025.

“The strong Q2 2026 outturn lifted real GDP growth for the first half of 2026 to 4.16 per cent, up from 3.68 per cent in the corresponding period of 2025, a clear signal of sustained strengthening across the economy,” the ministry said.

The services sector remained the largest contributor to economic output, accounting for 56.62 per cent of real GDP, while agriculture contributed 26.15 per cent and industry 17.23 per cent.

The ministry said manufacturing growth more than doubled to 3.24 per cent in Q2 2026 from 1.60 per cent a year earlier. Agriculture also accelerated to 4.39 per cent from 2.82 per cent, while services grew by 4.60 per cent compared with 3.94 per cent in Q2 2025.

The oil sector recorded one of the strongest improvements, growing by 7.31 per cent year-on-year. The performance was supported by higher average crude oil production, which rose to 1.72 million barrels per day during the quarter from 1.55 million barrels per day in Q1 2026.

The non-oil sector, however, remained the dominant component of the economy, accounting for 95.84 per cent of real GDP and growing by 4.31 per cent during the period.

The Federal Government also attributed part of the improvement in the dollar value of the economy to the relative stability of the naira.

It said the currency appreciated by more than 12 per cent between the first half of 2025 and the corresponding period of 2026, contributing to an estimated 17 per cent expansion in the size of the economy in US dollar terms over the period.

The ministry said the combination of stronger growth and improved exchange-rate stability had placed Nigeria in a better position to pursue its $1 trillion economy target.

“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,” it said.

The ministry also cited an International Monetary Fund projection which ranked Nigeria among the top 10 contributors to global real GDP growth in 2026, with the country expected to account for about 1.5 per cent of global growth.

Despite the improved performance, the latest figures showed that some areas of the economy continued to face challenges.

Industrial growth slowed to 3.96 per cent in Q2 2026 from 7.46 per cent in the corresponding quarter of 2025, while electricity, gas, steam and air-conditioning supply contracted by 10.63 per cent.

Nigeria’s real GDP grew by 3.87 per cent in 2025, compared with 3.38 per cent in 2024, according to NBS figures.

The Finance Ministry said the latest data reinforced the need for the Federal Government to sustain its economic reforms and ensure that growth translates into better living conditions for Nigerians.

“These results underscore the importance of sustaining our reforms and ensuring policy consistency as their benefits begin to reach households across the country,” the ministry said.

It added that the government would remain focused on accelerating inclusive growth and converting the recent macroeconomic improvements into broader economic opportunities and shared prosperity.