By David Akinmola
Nigeria’s trade sector contributed 17.89 per cent to the country’s Gross Domestic Product (GDP) in the first quarter of 2026, reinforcing its position as one of the key drivers of economic activity amid ongoing reforms and changing consumer spending patterns.
The latest figure highlights the importance of wholesale and retail trade to Nigeria’s economy, supported by increased commercial activities, expanding distribution networks and rising demand for goods and services across major urban centres.
Analysts said the sector’s performance reflects gradual improvements in business activities despite persistent inflationary pressures, exchange rate volatility and high operating costs confronting businesses nationwide.
The trade sector remains one of the largest contributors to Nigeria’s non-oil economy, providing employment opportunities and supporting supply chains across manufacturing, agriculture, logistics and consumer goods industries.
Economic experts noted that growth in digital commerce, informal retail markets and consumer-driven activities continued to support the sector during the review period.
However, operators within the sector said rising transportation costs, weak consumer purchasing power and foreign exchange challenges remain major concerns affecting profitability and expansion plans.
Stakeholders also pointed to the impact of inflation on household spending, noting that many businesses have had to adjust pricing structures and operational models to remain competitive.
Despite these challenges, economists expressed optimism that ongoing economic reforms, improved infrastructure and increased investments in trade facilitation could further strengthen the sector’s contribution to national output.
They added that sustaining growth in the trade sector would be critical to boosting non-oil revenue generation, stimulating small business activities and supporting broader economic diversification efforts.
