By: Tijani Salako.
Nigeria’s economy is gaining stronger momentum following the 4.43 per cent real Gross Domestic Product (GDP) growth recorded in the second quarter of 2026, with the Centre for the Promotion of Private Enterprise (CPPE) urging the Federal Government to deepen reforms that will translate growth into jobs and improved household welfare.
This was made known in a policy brief by the CPPE, made available to journalists by the Chief Executive Officer of the institute, Dr. Muda Yusuf.
The policy brief described the Q2 GDP performance as the strongest quarterly growth in five years, noting that the economy expanded from 3.89 per cent in the first quarter of 2026 and 4.23 per cent in the corresponding period of 2025.
According to CPPE, the improvement was driven by stronger oil production and broad-based growth across agriculture, mining, construction, trade, refining, financial services, real estate and other service sectors.
The institute noted that oil sector growth rose from 2.57 per cent in Q1 to 7.31 per cent in Q2, supported by an increase in average crude oil production from 1.55 million barrels per day to 1.72 million barrels per day. The non-oil sector also strengthened from 3.94 per cent to 4.31 per cent, while the services sector grew by 4.60 per cent and accounted for 56.62 per cent of real GDP.
CPPE said the latest GDP figures affirm that greater stability in the foreign exchange market, improved oil output, stronger investor confidence and better corporate performance are beginning to support economic recovery.
While welcoming the positive outlook, the institute warned against abrupt policy reversals, saying they could weaken investor confidence and undermine gains recorded in fiscal and foreign exchange stability.
The policy brief highlighted strong performances in domestic refining, which grew by 43.94 per cent, cement production at 12.75 per cent, chemicals and pharmaceuticals at 7.70 per cent, accommodation and food services at 6.96 per cent, and arts and entertainment at 11.93 per cent.
It, however, identified electricity and textiles as weak sectors requiring urgent policy attention. Electricity, gas and steam contracted by 10.63 per cent, while textiles, apparel and footwear declined by 1.23 per cent during the quarter.
Dr. Yusuf said power sector recovery should remain central to Nigeria’s industrialisation strategy, stressing that improved electricity supply would reduce production costs and boost competitiveness across manufacturing, agriculture, mining and services.
CPPE urged the government to consolidate macroeconomic stability by lowering inflation, reducing production costs, improving energy supply, strengthening logistics infrastructure and expanding access to long-term finance for productive sectors.
The institute also called for targeted support for agriculture, manufacturing, transport, MSMEs and employment-intensive industries, adding that stronger GDP growth must translate into higher real incomes, more jobs and a steady reduction in poverty across the country.
