0
LAGOS – Nigeria’s economy has entered the second half of 2026 with its strongest macroeconomic fundamentals in years, but mounting political activities ahead of the 2027 general elections could threaten the country’s fragile recovery if policymakers lose focus on critical economic reforms.
This was the position of the Centre for the Promotion of Private Enterprise (CPPE) in its half-year review and second-half outlook for the Nigerian economy, where it acknowledged significant improvements in key economic indicators while warning that the benefits have yet to translate into better living standards, stronger productivity and improved business competitiveness.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, said the country has recorded notable progress in stabilising the macroeconomy, with greater exchange rate stability, moderating inflation, stronger external reserves, improved crude oil production and resilient financial markets helping to restore investor confidence.
According to the report, these developments have significantly reduced Nigeria’s macroeconomic vulnerabilities and created a stronger platform for investment and sustainable economic growth.
However, Yusuf stressed that macroeconomic stability alone would not guarantee economic prosperity unless accompanied by structural reforms capable of reducing production costs.
He stressed that sustained reform momentum, stronger implementation capacity and disciplined economic management will be critical to ensuring that Nigeria’s macroeconomic recovery translates into broad-based and inclusive growth.
Yusuf maintained that while stabilising the macroeconomy was a significant achievement, the next stage of Nigeria’s economic journey must focus on making businesses more competitive and improving the welfare of citizens.
He argued that the quality of economic management in the remaining months of 2026 would be judged not merely by stable inflation, exchange rates or external reserves, but by tangible improvements in productivity, investment, employment generation and the ease of doing business.
“The gains in macroeconomic stability must now be converted into real-sector growth. Businesses need lower production costs, improved infrastructure, better security and easier access to finance if they are to expand operations and create jobs,” he said.
The CPPE, therefore, urged the Federal Government to sustain the momentum of ongoing reforms while resisting the temptation to allow electioneering activities to overshadow economic governance.
According to the organisation, preserving policy consistency, accelerating the implementation of infrastructure projects and maintaining investor confidence will be crucial to consolidating recent gains.
It also stressed the need to deepen domestic value addition across key sectors of the economy to reduce import dependence, strengthen industrialisation and enhance Nigeria’s export competitiveness.
The report concluded that although Nigeria enters the second half of 2026 on a much stronger macroeconomic footing than it did a year ago, the real test lies in translating those gains into faster economic growth, more jobs and improved living standards for millions of Nigerians.
It added that if government remains committed to structural reforms and avoids policy reversals amid heightened political activities ahead of the 2027 elections, the country would be better positioned to achieve durable, broad-based and inclusive economic transformation.
