CPPE Urges FG to Turn Five-Year GDP High Into Jobs, Higher Incomes

The Centre for the Promotion of Private Enterprise has called on the Federal Government to ensure that Nigeria’s strongest quarterly economic growth in five years translates into jobs, rising household incomes and lower poverty.

It made the call in a policy brief, issued on Tuesday by the Chief Executive Officer of CPPE, Dr Muda Yusuf.

The Centre noted that Nigeria’s real gross domestic product (GDP) grew by 4.43 per cent in the second quarter of 2026, up from 3.89 per cent in the first quarter and 4.23 per cent in the corresponding period of 2025.

CPPE described the outcome as an important indication that the economy was gaining momentum after a difficult period of macroeconomic adjustment but said the next challenge was to ensure that the recovery improved the welfare of households.

“The GDP report is an encouraging affirmation that the economy is gaining momentum. The priority now is to broaden these gains, strengthen employment-intensive sectors and ensure that improving output translates into better living standards,” the group said.

According to the CPPE, stronger oil production and broad-based growth across agriculture, mining, construction, trade, refining, financial services, real estate and selected service activities drove the improved performance.

Oil-sector growth accelerated from 2.57 per cent in the first quarter to 7.31 per cent in the second quarter, 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 economy also strengthened, growing by 4.31 per cent compared with 3.94 per cent in the first quarter, while the services sector expanded by 4.60 per cent and accounted for 56.62 per cent of real GDP.

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CPPE said the figures suggested that greater stability in the foreign-exchange market, improved oil output, stronger investor confidence and better corporate performance were beginning to support the recovery.

“The latest numbers suggest that greater stability in the foreign-exchange market, improved oil output, stronger investor confidence and better corporate performance are beginning to support recovery,” the policy group said.

It warned against abrupt policy reversals, saying such actions could undermine confidence and reverse recent fiscal and foreign-exchange gains.

“The next phase should therefore consolidate these achievements while easing adjustment pressures on businesses and households through lower production costs, stronger social support and employment-focused investment,” CPPE said.

The group said growth accelerated across several sectors during the quarter. Mining and quarrying expanded by 6.37 per cent, compared with 1.89 per cent in the first quarter, while agriculture grew by 4.39 per cent from 3.15 per cent.

Financial and insurance services rose by 9.29 per cent, real estate grew by 3.76 per cent, while construction expanded by 6.75 per cent.

Domestic refining remained one of the strongest growth areas, expanding by 43.94 per cent after recording 37.46 per cent growth in the first quarter.

Cement production grew by 12.75 per cent, chemicals and pharmaceuticals expanded by 7.70 per cent, accommodation and food services rose by 6.96 per cent, while arts and entertainment grew by 11.93 per cent.

CPPE said the performance provided a platform for a more diversified recovery.

“These improvements provide a useful platform for a more diversified recovery. With the right infrastructure, investment climate and value-chain policies, the present gains could become more durable and broadly shared,” it said.

However, the policy group said some critical sectors continued to face challenges despite the broader improvement.

Manufacturing remained positive at 3.24 per cent, slightly below the 3.29 per cent recorded in the first quarter, while electricity, gas and steam contracted by 10.63 per cent.

Textiles, apparel and footwear also contracted by 1.23 per cent, while motor-vehicle assembly declined by 1.02 per cent.

CPPE said a sustained recovery in the electricity sector was critical to strengthening the broader economic momentum and lowering production costs across the economy.

“The broader recovery would receive a major boost from a turnaround in electricity. Power-sector reform should therefore be accelerated as a central pillar of Nigeria’s industrial and investment strategy,” it said.

The group also identified textiles as a sector requiring focused policy support because of its potential to create jobs and strengthen linkages with cotton farming, ginning, fashion, retail and exports.

CPPE said the improving GDP figures should now be accompanied by stronger indicators of household welfare and employment.

“Growth is gaining traction; the welfare transmission should now strengthen,” it said.

According to the group, the gains from refining, extractives, finance and telecommunications should be linked more strongly with agriculture, agro-processing, textiles, construction, trade and small-scale manufacturing to create more jobs and raise household incomes.

“At 4.43 per cent, economic growth is moving in the right direction and now exceeds recent performance. Sustaining and raising this momentum is important given Nigeria’s poverty burden, employment challenge, population dynamics and infrastructure deficit,” CPPE said.

The organisation said policy success should not be measured only by GDP growth but also by the number and quality of jobs created, real household incomes, MSME survival and expansion, agricultural yields, manufacturing value added, non-oil exports and poverty reduction.

“With sustained reforms and stronger productive investment, Nigeria can progressively raise growth towards 6-7 per cent, led by sectors with strong employment and domestic value-chain multipliers,” it said.

CPPE called for policies that would consolidate macroeconomic stability and translate it into lower production costs and stronger investment.

It said the benefits of improved exchange-rate stability and public finances should include lower inflation, declining interest rates, more reliable energy, efficient logistics and a predictable regulatory environment.

The group also urged the government to channel the strong performance of the financial sector into productive sectors such as manufacturing, agriculture, mining and MSMEs.

“As inflation moderates, there should be room for an orderly reduction in interest rates,” CPPE said.

It further called for stronger social support to ensure that the benefits of economic stabilisation reached vulnerable Nigerians more quickly, including targeted and digitally verified cash transfers, nutrition support, labour-intensive public works, apprenticeships and technical training.

CPPE also recommended that the government publish an inclusive-growth dashboard alongside quarterly GDP reports to track employment, real wages, poverty-sensitive inflation, MSME performance, agricultural yields, manufacturing value added, electricity supplied to productive users, non-oil exports and private investment.

“This would compel policy to focus not only on how fast the economy is growing, but also on who is benefiting from that growth,” the group said.

CPPE said the second-quarter GDP report confirmed that Nigeria’s economic momentum was improving and that both oil and non-oil sectors were contributing to the recovery.

“The economy is clearly moving in a more positive direction. The next task is to ensure that stronger GDP growth translates into expanding businesses, productive employment, rising real incomes and a steady reduction in poverty,” it added.