Nigeria’s petroleum refining sector recorded the fastest growth among all major sectors of the economy in the first quarter of 2026, expanding by 37.46 percent year-on-year, according to an assessment of the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS).
The Centre for the Promotion of Private Enterprise (CPPE) attributed the strong performance to increased domestic refining capacity led by Dangote Refinery, alongside growing regional and international demand for Nigerian refined petroleum products amid ongoing tensions in the Middle East that continue to affect global energy markets.
The position was contained in CPPE’s review of Nigeria’s first-quarter economic performance, which showed that the country’s real GDP grew by 3.89 percent in Q1 2026, compared to 3.13 percent recorded in the corresponding period of 2025.
Commenting on the report, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said several sectors of the economy posted encouraging results during the quarter, particularly petroleum refining, construction, real estate and the solid minerals segment.
According to Yusuf, construction and real estate maintained strong momentum and collectively accounted for nearly 18 percent of national output, reflecting sustained infrastructure development and continued investor interest in property assets.
However, he identified petroleum refining as the standout performer in the quarter, noting that the sector achieved the highest growth rate among all industries captured in the GDP report.
Yusuf said the performance highlights the strategic importance of local refining capacity to Nigeria’s economic development agenda.
He explained that expanding domestic refining operations can strengthen energy security, reduce dependence on imported petroleum products, support industrial growth and improve foreign exchange conservation.
The CPPE chief also linked the sector’s growth to increased demand for refined products from regional and international markets.
According to him, geopolitical uncertainties in the Middle East have continued to create disruptions within global energy supply chains, creating opportunities for alternative sources of refined petroleum products, including supplies originating from Nigeria.
He noted that Dangote Refinery has played a significant role in driving the sector’s expansion, adding that the facility is increasingly reshaping the country's energy landscape by boosting local value addition and reducing reliance on imported fuels.
Beyond refining, the report showed that the quarrying and minerals sector recorded a growth rate of 23.41 percent during the quarter, while the cement industry expanded by 11.53 percent, reflecting continued activity in construction and infrastructure development.
Despite improvements in some industrial indicators, Yusuf noted that the manufacturing sector remains relatively weak.
According to him, manufacturing grew by 3.29 percent in the first quarter, representing an improvement from the 1.13 percent growth recorded in the fourth quarter of 2025, but still indicating that broader challenges within the sector persist.
He stressed the need for continued reforms and policy support to strengthen industrial productivity and sustain economic growth across key sectors of the Nigerian economy.