Nigeria’s Economy Expands 4.43% as Coal, Refining, Insurance Lead Fastest-Growing Sectors
Nigeria’s economy grew by 4.43% year-on-year in real terms in the second quarter of 2026, its strongest quarterly performance in five years, with coal mining, oil refining, metal ores and insurance emerging among the fastest-growing sectors.
The performance, based on the latest Gross Domestic Product (GDP) data from the National Bureau of Statistics (NBS), represents an improvement from the 4.23% growth recorded in the corresponding quarter of 2025.
The Q2 figures show that while growth was broad-based across several parts of the economy, extractive and energy-related activities recorded the most significant expansions.
Coal Mining Leads Growth
Coal mining recorded the highest growth rate during the quarter, expanding by 74.89%.
The sector staged a major turnaround from a 9.80% contraction in Q1 2026. Its Q2 performance also represents an increase from the 57.53% growth recorded in Q2 2025.
The sharp rebound was attributed to stronger demand from the power sector, mine rehabilitation and continued investment aimed at diversifying Nigeria’s energy sources.
Oil Refining Records 43.94% Growth
Oil refining ranked second, growing by 43.94% in Q2 2026, compared with 37.46% in the first quarter.
The sector’s growth has accelerated significantly compared with the 15.78% recorded in Q2 2025.
The recovery has been supported by rising domestic refining capacity, particularly the expansion of the Dangote Refinery, which is contributing to Nigeria’s efforts to reduce dependence on imported refined petroleum products.
Metal Ores Rebound
Metal ores recorded 20.18% growth during the quarter, representing a sharp reversal from the 8.75% contraction recorded in Q1 2026.
The sector had also contracted by 6.96% in Q2 2025, highlighting the volatility that has characterised mining activities in recent quarters.
The latest rebound points to increased mining activity and stronger demand for industrial and construction-related inputs.
Insurance Among Fastest-Growing Sectors
Insurance was the fourth-fastest-growing sector, expanding by 16.13% in Q2 2026.
The sector accelerated significantly from 9.94% in Q1 2026 and remained one of the stronger performers in the economy.
According to the sector analysis, stronger enforcement of compulsory insurance requirements, expanding corporate insurance coverage and increasing adoption of digital channels for policy distribution are supporting the industry’s growth.
The sector recorded 15.70% growth in Q2 2025, while its strongest recent performance was 21.37% in Q4 2025.
Cement Growth Reaches 12.75%
Cement production grew by 12.75% in Q2, up from 11.53% in Q1 2026.
The sector has benefited from sustained construction and infrastructure activity, alongside capacity expansion by major producers.
Its growth rate has also nearly tripled compared with the 4.86% recorded in Q2 2025.
Creative Industries Maintain Strong Momentum
Arts, entertainment and recreation expanded by 11.93%, while motion pictures, sound recording and music production grew by 9.15%.
The creative sector continued its recovery, with motion pictures, sound recording and music production increasing from 8.86% in Q1 2026 and more than doubling its Q2 2025 growth rate of 4.07%.
Arts, entertainment and recreation also improved from 11.25% in Q1 2026.
Telecommunications Remain in Double-Digit Growth
Telecommunications and information services recorded 10.38% growth in Q2 2026.
Although the rate moderated from 12.24% in Q1, it remained substantially above the 7.39% recorded in Q2 2025.
Continued demand for data and the growing adoption of digital services remain key drivers of the sector.
Water and Waste Management Expand
Water supply, sewerage, waste management and remediation grew by 11.24% in Q2, compared with 10.32% in Q1.
The sector has maintained relatively consistent growth, remaining above 6% in every quarter since early 2024.
Financial Institutions Grow 8.35%
Financial institutions recorded 8.35% growth during the quarter, placing them tenth among Nigeria’s fastest-growing sectors.
The sector’s growth was broadly flat compared with the 8.40% recorded in Q1 2026 but significantly lower than the 16.18% recorded in Q2 2025.
The moderation reflects the normalisation of elevated interest income that had supported financial institutions during the previous year. At the same time, banking-sector recapitalisation has strengthened capital buffers and could support future expansion.
Top 10 Fastest-Growing Sectors in Q2 2026
| Rank | Sector | Q2 2026 Growth |
|---|---|---|
| 1 | Coal Mining | 74.89% |
| 2 | Oil Refining | 43.94% |
| 3 | Metal Ores | 20.18% |
| 4 | Insurance | 16.13% |
| 5 | Cement | 12.75% |
| 6 | Arts, Entertainment & Recreation | 11.93% |
| 7 | Water Supply, Sewerage, Waste Management & Remediation | 11.24% |
| 8 | Telecommunications & Information Services | 10.38% |
| 9 | Motion Pictures, Sound Recording & Music Production | 9.15% |
| 10 | Financial Institutions | 8.35% |
What the Figures Mean
The Q2 GDP figures suggest that Nigeria’s economic recovery is gaining momentum, but growth remains uneven across sectors.
Extractive and energy-linked activities were the strongest contributors to the expansion, with coal mining and oil refining recording exceptionally high growth rates. At the same time, services such as telecommunications, insurance, financial services and the creative industries continued to provide a broader base for economic activity.
However, the sharp swings recorded in sectors such as coal mining and metal ores highlight the volatility that remains within parts of Nigeria’s productive economy.
Overall, the 4.43% GDP growth in Q2 2026 points to an economy expanding at a faster pace, with rising activity in mining, refining, manufacturing-related sectors and services helping to strengthen the country’s growth trajectory.
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