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The Centre for the Promotion of Private Enterprise (CPPE) has said that although Nigeria’s economy has recorded significant macroeconomic improvements in the first half of 2026, the gains have yet to translate into better living standards, stronger productivity and widespread job creation.
In its half-year economic review and outlook released on Sunday, the Chief Executive Officer of the CPPE, Muda Yusuf, said the country entered the second half of the year with stronger economic fundamentals, including a more stable exchange rate, moderating inflation, higher external reserves, improved crude oil production and stronger investor confidence.
According to the report, these developments have reduced macroeconomic vulnerabilities and strengthened confidence in the economy.
However, Yusuf noted that businesses continue to face high operating costs driven by expensive energy, inadequate electricity supply, poor transport infrastructure and logistics bottlenecks, while households have seen only modest improvements in welfare.
“Macroeconomic stabilisation has not yet led to significant, broad-based improvements in productivity, competitiveness, employment and household welfare,” the report stated.
The CPPE observed that although economic growth remained positive during the first half of the year, manufacturing, agriculture and micro, small and medium-sized enterprises continued to struggle under high interest rates, limited access to credit and persistent insecurity, particularly in farming communities. It also noted that capital expenditure implementation remained below expectations due to procurement delays, funding constraints and rising debt-service obligations, limiting the government’s ability to stimulate economic growth.
Looking ahead, the think tank expressed cautious optimism about Nigeria’s economic prospects for the second half of 2026.
It projected that growth would continue to be supported by financial services, telecommunications, construction, trade, oil refining and other service sectors, although overall expansion is expected to remain below the country’s long-term growth potential.
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The report also forecast that inflation would remain lower than the exceptionally high levels recorded in 2025, while exchange-rate stability is expected to be sustained by stronger foreign exchange inflows, healthier external reserves and improved market confidence.
The CPPE added that financial markets are likely to remain resilient, supported by bank recapitalisation, improved corporate earnings, stronger regulation and sustained institutional investment.
It further stated that increased domestic refining capacity and higher crude oil production should strengthen government revenues, improve foreign exchange earnings and enhance energy security. However, the organisation warned that political activities ahead of the 2027 general elections could pose risks to the economy.
According to the report, election-related spending may increase liquidity in the economy, fuel inflationary pressures and raise demand for foreign exchange. It also cautioned that growing political activities could distract policymakers from implementing key economic reforms and executing critical fiscal programmes.
To sustain the recovery, the CPPE urged the Federal Government to shift attention from macroeconomic stabilisation to structural reforms that improve the competitiveness of Nigerian businesses.
It called for improved electricity supply, better transport and port infrastructure, enhanced security in farming communities, easier access to affordable long-term financing for productive sectors, faster budget implementation and policies that encourage local value addition.
The group also advised the government to focus on improving tax efficiency rather than introducing additional tax burdens and to maintain policy consistency despite the approaching election cycle.
The CPPE concluded that while Nigeria has achieved its strongest macroeconomic position in several years, the real test of economic management will be whether the reforms deliver lower production costs, higher private investment, faster job creation and improved living standards for Nigerians.
