The Centre for the Promotion of Private Enterprise (CPPE) has described Nigeria’s first-quarter 2026 economic performance as evidence that the economy remains on a gradual recovery path, despite persistent structural challenges affecting productivity, employment, and household welfare.
Reacting to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS), CPPE noted that Nigeria’s economy grew by 3.89% year-on-year in Q1 2026, an improvement from the 3.13% growth recorded in the corresponding period of 2025.
The economic policy think tank, however, said its assessment of the latest figures remains one of cautious optimism, noting that the growth rate was marginally lower than the 4.0% expansion recorded in the fourth quarter of 2025.
In a statement signed by its Chief Executive Officer, Dr. Muda Yusuf, the organisation stated that the latest GDP data reflects continued macroeconomic stabilisation, improving business confidence, and the resilience of key sectors of the economy, particularly non-oil activities.
### Services sector continues to drive growth
According to the CPPE, the Q1 2026 growth performance was largely supported by resilient service-sector activities, digital economy expansion, trade, construction, and the growing contribution of domestic petroleum refining capacity.
The organisation noted that these sectors continue to provide momentum for economic expansion despite the challenging operating environment faced by businesses and households.
CPPE also observed that the slight moderation in growth compared with the previous quarter was not unexpected, given the seasonal nature of economic activity during the first quarter of the year.
According to the group, economic activities are traditionally softer at the beginning of the year due to business cycle factors and seasonal adjustments.
### Structural weaknesses remain
Despite the encouraging headline growth figures, the organisation cautioned that several structural weaknesses continue to undermine the economy’s ability to deliver broad-based and sustainable development.
The report identified weak electricity supply, modest industrial sector contribution, fragile oil production performance, and elevated operating costs as key constraints limiting productivity growth, job creation, and improvements in household welfare.
According to CPPE, these challenges continue to reduce the economy’s capacity to generate meaningful employment opportunities and improve living standards for ordinary Nigerians.
The organisation further noted that while GDP growth remains an important macroeconomic indicator, the quality and inclusiveness of that growth are equally critical.
### Growth must translate into better living standards
Dr. Yusuf stressed that economic expansion should ultimately lead to tangible improvements in citizens’ welfare, including stronger purchasing power, lower cost-of-living pressures, and improved living conditions.
He argued that growth figures alone are insufficient if they do not translate into broader economic benefits for households and businesses.
According to him, growth without inclusion delivers limited economic and social value, particularly in an environment where inflationary pressures and high business costs continue to affect consumers and enterprises.
### Call for productivity-driven reforms
Looking ahead, CPPE urged policymakers to focus the next phase of economic reforms on productivity enhancement and structural transformation.
The organisation identified industrialisation, power sector reforms, export competitiveness, and inclusive economic growth as critical priorities for achieving sustainable development and long-term prosperity.
It noted that while recent reforms have contributed to macroeconomic stability, deeper interventions are required to unlock productivity, strengthen domestic production, improve competitiveness, and enhance welfare outcomes across the country.
According to CPPE, these reforms will be essential for translating economic growth into meaningful gains for businesses, workers, and households.
### Outlook remains cautiously positive
While acknowledging the challenges facing the economy, CPPE maintained that the latest GDP report provides evidence that Nigeria’s economic recovery remains on track.
The organisation concluded that continued improvements in business confidence, expanding non-oil sector activities, and ongoing economic reforms could support further growth in the coming quarters.
However, it stressed that the sustainability of the recovery will ultimately depend on the government’s ability to address structural bottlenecks, improve productivity, and ensure that economic growth delivers measurable benefits to the wider population.
