Nigeria's GDP Expected to Grow by 4% in 2026, Fueled by Non-Oil Sectors and Investor Confidence

FSDH Merchant Bank forecasts Nigeria's GDP to expand by 4% in 2026, fueled by non-oil sector growth and renewed investor confidence. President Bola Tinubu's removal of unsustainable fuel subsidies and currency floatation have alleviated fiscal pressures, leading to inflation reduction.

The country's GDP grew by 4.23% in Q2 2025, with expectations of further growth post-removal from the GREI list. Recommendations include deepening investment in manufacturing, agriculture, and ICT sectors.

Inflation is projected to moderate to 17-19% in 2026, with a stable exchange rate and reduced food prices.