Nigeria: Q1'26 GDP Report - Economy Remains On Gradual Recovery Path - Cppe

THE Centre for the Promotion of Private Enterprises, CPPE, reacting to the Q1 2026 Gross Domestic Product, GDP, growth outcome report released by the National Bureau of Statistics, NBS, recording a year-on-year real GDP growth of 3.89%, said the economy remains on a gradual recovery path.

In a statement signed by Chief Executive Officer, CPPE, Dr Muda Yusuf, the growth of year-on-year real GDP growth of 3.89%, compared with 3.13% in Q1 2025, the Centre said it is with caution optimism that it views the report, reflecting marginally lower than the 4.0% growth recorded in Q4 2025.

According to CPPE, overall, the Q1 2026 GDP report reflects an economy supported by resilient services, digital activities, trade, construction and expanding domestic refining capacity. However, the report also exposes structural vulnerabilities, especially in power supply, industrial productivity and export competitiveness.

The next phase of economic reform should therefore focus more deliberately on productivity enhancement, industrialization, power sector reforms, export competitiveness and inclusive growth. These remain the critical foundations for sustainable economic transformation and improved welfare outcomes for Nigerians.

Meanwhile, Yusuf said the performance reflects continued macroeconomic stabilization, improving business confidence and the resilience of key non-oil sectors.

"The moderation relative to the preceding quarter is not unusual, as first-quarter economic activities are typically softer because of seasonal and business cycle factors. Overall, the economy remains on a gradual recovery path.

"The GDP numbers are encouraging from a macroeconomic standpoint, concerns remain regarding the quality, inclusiveness and welfare impact of growth," he noted.

However, he pointed out that, "Weak electricity supply, modest industrial contribution, fragile oil output and elevated operating costs continue to constrain employment generation, productivity and household welfare.

"Economic growth must ultimately translate into improved living conditions, stronger purchasing power and better welfare outcomes for citizens. Growth without inclusion delivers limited economic and social dividends."

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