Nigeria's Economy Shows Stability Amid High Costs in Q1 2026

In the first quarter of 2026, Nigeria's economy demonstrated stability, as reported by the Centre for the Promotion of Private Enterprise (CPPE). Inflation decreased from over 24% in early 2025 to approximately 15.06% in February 2026, aided by tighter monetary conditions and an improved exchange rate.

The naira stabilized within a narrow band of N1,340 to N1,430 per dollar, contributing to moderated import inflation and restored business confidence. Dr. Muda Yusuf, Managing Director of CPPE, noted that external reserves exceeded $50 billion early in 2026, reflecting stronger oil earnings.

Real GDP growth was reported at 4.07% year-on-year for Q4 2025, with full-year growth at 3.87%. Despite positive indicators, challenges remain, including high transportation and energy costs, which erode household purchasing power.

The outlook for Q2 2026 suggests sustained macroeconomic momentum, but risks persist due to potential escalations in global crude oil prices, which could impact domestic fuel costs and operational expenses across the economy.