Precious Anga
Lagos — Nigeria’s petroleum refining sector recorded a sharp 37.46 per cent growth in the first quarter of 2026, driven largely by the operational impact of Dangote Refinery and rising global demand for Nigerian refined products amid continued instability in the Middle East.
The Centre for the Promotion of Private Enterprise (CPPE) made the disclosure in its review of the National Bureau of Statistics’ Q1 2026 Gross Domestic Product report, which showed Nigeria’s economy expanded by 3.89 per cent year-on-year, higher than the 3.13 per cent growth posted in the corresponding period of 2025.
Chief Executive Officer of CPPE, Dr Muda Yusuf, described petroleum refining as the strongest performing sector during the quarter, saying its rapid expansion highlights the growing importance of domestic refining to Nigeria’s economic and energy outlook.
According to Yusuf, the refining sector’s performance reflects the transformational role of Dangote Refinery in reshaping Nigeria’s downstream oil industry, strengthening local value addition and reducing dependence on imported petroleum products.
He noted that the refinery’s emergence has improved Nigeria’s energy security, supported import substitution efforts, encouraged industrialisation and helped conserve scarce foreign exchange.
Yusuf also linked the sector’s strong momentum to heightened regional and international demand for Nigerian refined petroleum products, triggered by geopolitical tensions in the Middle East and disruptions affecting global energy supply chains.
Beyond refining, the CPPE said other sectors posted notable gains in the first quarter. The quarrying and minerals sector grew by 23.41 per cent, while the cement industry expanded by 11.53 per cent, reflecting sustained construction activities across the country.
The organisation added that the construction and real estate sectors maintained solid momentum, jointly accounting for nearly 18 per cent of GDP, supported by ongoing infrastructure investments and increasing investor interest in property assets.
However, CPPE cautioned that Nigeria’s manufacturing sector remains vulnerable despite recording modest improvement. The sector grew by 3.29 per cent in Q1 2026, compared with 1.13 per cent growth recorded in the fourth quarter of 2025, indicating that broader industrial challenges still persist.
