CPPE Warns of Severe Power Sector Contraction in Nigeria

The Centre for the Promotion of Private Enterprise (CPPE) reported a concerning contraction in Nigeria's electricity and gas sector, which experienced a decline of 15-30% in the first quarter of 2026. Dr. Muda Yusuf, the Chief Executive Officer of CPPE, disclosed these findings during a policy brief based on the National Bureau of Statistics' Q1 2026 Gross Domestic Product report.

Despite Nigeria's economy growing by 3.89% in Q1 2026 compared to 3.13% in the same period in 2025, the electricity and gas sector's performance was the weakest recorded in recent years. This contraction reflects persistent structural weaknesses in power generation, transmission, and distribution, which threaten sustainable economic growth and industrial competitiveness.

CPPE warned that worsening electricity supply could further increase production costs for businesses already facing high interest rates and logistical expenses. The think tank emphasized the need for urgent reforms across the electricity value chain to stabilize supply and restore investor confidence.