Nigeria's Economic Outlook for H2 2026: Strong Fundamentals

The Centre for the Promotion of Private Enterprise (CPPE) has declared that Nigeria is entering the second half of 2026 with its strongest macroeconomic fundamentals in several years, which has bolstered investor confidence. Dr. Muda Yusuf, the Chief Executive Officer of CPPE, expressed cautious optimism about the economic outlook, noting that while the economy is on a gradual recovery path, inflation is expected to remain substantially below 2025 levels.

Yusuf highlighted that the exchange rate stability and improved external reserves are positive indicators. However, he warned that increased political activity ahead of the 2027 elections could inject additional liquidity into the economy, potentially leading to inflationary pressures.

The report also pointed out that despite improvements, challenges such as high interest rates and structural bottlenecks continue to affect product competitiveness and household welfare. The CPPE emphasized the need for policies that enhance business competitiveness and attract private investment to foster job creation and improve living standards.