Nigeria's Economic Outlook for H2 2026: Key Insights

The Centre for the Promotion of Private Enterprise (CPPE) released a report indicating that Nigeria must transition from stability to competitiveness in the second half of 2026. Dr.

Muda Yusuf, Chief Executive Officer of CPPE, noted that while the exchange rate has stabilized, inflation is moderate, and external reserves have improved, macroeconomic stability has not yet translated into broad-based economic benefits. High production costs and long-standing structural constraints continue to challenge businesses.

The report highlighted that despite positive economic growth in the first half of 2026, issues such as high-interest rates, energy costs, and inadequate electricity supply hinder private sector investment. Looking ahead, CPPE expressed cautious optimism for continued economic growth, particularly in sectors like finance, telecommunications, and construction, although growth is expected to remain below Nigeria's long-term potential.

The report also warned of risks associated with the upcoming 2027 general elections, which could impact economic management in the latter half of the year.