Nigeria’s economy remains on a gradual recovery path despite lingering structural weaknesses that continue to limit the impact of growth on businesses and households, the Centre for the Promotion of Private Enterprise (CPPE) has said.
Reacting to the first quarter 2026 Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS), the private sector advocacy group described the 3.89 per cent year-on-year growth recorded during the period as encouraging, but cautioned that the quality and inclusiveness of growth remain key concerns.
The NBS report showed that the economy expanded by 3.89 per cent in Q1 2026, higher than the 3.13 per cent growth recorded in the corresponding period of 2025, though slightly below the 4.0 per cent growth achieved in the fourth quarter of 2025.
Signs of Economic Stability
In a statement signed by its Chief Executive Officer, Dr. Muda Yusuf, the CPPE said the latest figures reflect continued macroeconomic stabilisation, improving business confidence and the resilience of major non-oil sectors.
“The GDP numbers are encouraging from a macroeconomic standpoint,” Yusuf stated, adding that the economy’s performance demonstrates that recovery efforts are gradually yielding results.
According to him, the slight moderation in growth compared to the previous quarter was not unusual, as economic activities in the first quarter are often affected by seasonal and business-cycle factors.
“Overall, the economy remains on a gradual recovery path,” he said.
Services, Trade Drive Growth
The CPPE noted that the first-quarter expansion was supported largely by resilient performance in the services sector, growing digital activities, trade, construction and increasing domestic refining capacity.
According to the Centre, these sectors have continued to sustain economic activity and provide momentum for growth amid ongoing reforms and changing market realities.
The organisation said the report reflects an economy benefiting from the strength of non-oil sectors, particularly services and domestic commerce.
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Despite the positive growth figures, the CPPE warned that concerns remain about the quality, inclusiveness and welfare impact of economic growth.
According to Yusuf, many Nigerians are yet to feel the benefits of the improving macroeconomic indicators as businesses and households continue to grapple with difficult operating conditions.
“Economic growth must ultimately translate into improved living conditions, stronger purchasing power and better welfare outcomes for citizens,” he said.
“Growth without inclusion delivers limited economic and social dividends.”
The Centre identified weak electricity supply, modest industrial sector performance, fragile crude oil production and high operating costs as major constraints limiting the economy’s potential.
Yusuf said these structural challenges continue to hinder productivity, employment generation and broader economic competitiveness.
The CPPE also warned that vulnerabilities in power supply, industrial productivity and export competitiveness remain significant obstacles to sustainable growth.
To consolidate the gains already recorded, the Centre urged policymakers to focus the next phase of economic reforms on productivity enhancement, industrialisation, power sector reforms, export competitiveness and inclusive growth.
According to the organisation, these areas represent the critical foundations needed to achieve sustainable economic transformation and improve welfare outcomes for Nigerians.
The CPPE maintained that while the latest GDP figures justify cautious optimism, long-term success will depend on the government’s ability to address structural bottlenecks and ensure that economic growth translates into tangible benefits for citizens.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.