The Centre for the Promotion of Private Enterprise (CPPE) has hailed the first quarter gross domestic product (GDP) growth of 3.89 per cent, describing it as a reflection of continued macroeconomic stabilisation, improving business confidence and the resilience of key non-oil sectors.

It however said sustainable economic transformation cannot be driven by commerce alone, noting that long-term growth resilience requires stronger productive capacity, deeper industrialisation and significantly higher domestic value addition.

The National Bureau of Statistics (NBS) had reported that the non-oil sector has continued to dominate contributions to Nigeria’s GDP, contributing 96.08 per cent to the nation’s 3.89 per cent GDP growth recorded in the first quarter of 2026.

The 96.08 per cent is higher than the share recorded in the first quarter of 2025, which was 96.03 per cent, but lower than the fourth quarter of 2025 which recorded 97.13 per cent.

The non-oil sector contribution was dominated by the services sector which contributed 57.75 per cent. This contribution is 0.23 per cent higher than its contribution in the first quarter of 2025 which was 57.50 per cent.

The CPPE in a policy brief on the GDP report, signed by its Chief Executive Officer, Dr Muda Yusuf, said one of the most significant highlights of the report is the emergence of the trade sector as the single largest contributor to GDP at 17.89 per cent.

“This reflects the positive effects of improved exchange rate stability, better FX liquidity conditions, easing inflationary pressures and recovering business confidence on commercial activities and trade flows”, it said.

The manufacturing sector growth of 3.29 per cent, which is still below 10 per cent, it said, highlights the continuing structural constraints confronting the industrial sector.

“High energy costs, elevated interest rates, weak infrastructure, logistics bottlenecks and policy uncertainties continue to undermine industrial productivity and competitiveness”, it noted, adding that the economy cannot achieve durable structural transformation without a stronger manufacturing base.

“Industrialisation remains the most sustainable pathway to large-scale job creation, export competitiveness and inclusive growth.”

The CPPE observed that the most troubling aspect of the report is the sharp contraction of the electricity/gas sector by 15.30 per cent, making it the weakest-performing sector in the quarter and the steepest contraction recorded by the sector in recent years.