The Centre for the Promotion of Private Enterprise (CPPE) has welcomed Nigeria’s acceleration in economic growth, with real Gross Domestic Product (GDP) rising to 4.43 per cent in the second quarter of 2026, but urged the Federal Government to ensure that the expansion translates into more jobs, lower production costs and improved household welfare.
CPPE, in a policy brief signed by its Chief Executive Officer, Dr Muda Yusuf, said the Q2 performance represented an improvement from the 3.89 per cent recorded in the first quarter of 2026 and the 4.23 per cent recorded in the corresponding quarter of 2025.
The organisation described the latest figure as the strongest quarterly growth in five years, saying it provided an encouraging indication that the economy was gaining momentum following a difficult period of macroeconomic adjustment.
According to CPPE, the growth was supported by stronger oil production and broad based expansion in agriculture, mining, construction, trade, refining, financial services, real estate and other service activities.
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The oil sector recorded a sharp improvement, growing by 7.31 per cent in Q2, compared with 2.57 per cent in Q1. Average crude oil production also increased from 1.55 million barrels per day to 1.72 million barrels per day during the quarter.
The non oil economy equally strengthened, with growth rising from 3.94 per cent to 4.31 per cent, while the services sector expanded by 4.60 per cent and accounted for 56.62 per cent of real GDP.
CPPE attributed the improving economic performance partly to greater foreign exchange stability, stronger oil output, improved investor confidence and better corporate performance. It urged policymakers to maintain the broad reform direction, warning that abrupt policy reversals could undermine gains in foreign exchange stability, public finances and investor confidence.
Refining emerges as major growth driver
One of the strongest performances came from domestic refining, which expanded by 43.94 per cent in Q2, following 37.46 per cent growth in the first quarter.
The refining performance was accompanied by a 12.75 per cent growth in cement, 7.70 per cent in chemicals and pharmaceuticals, 6.96 per cent in accommodation and food services, and 11.93 per cent in arts and entertainment.
Mining and quarrying accelerated from 1.89 per cent in Q1 to 6.37 per cent, while agriculture rose from 3.15 per cent to 4.39 per cent. Livestock recorded a particularly strong improvement, growing from 2.20 per cent to 6.92 per cent.
Construction also expanded from 6.38 per cent to 6.75 per cent, while trade rose from 2.08 per cent to 2.40 per cent. Financial and insurance services increased from 8.54 per cent to 9.29 per cent, while real estate grew from 2.29 per cent to 3.76 per cent.
CPPE said the broad spread of growth across sectors provided a platform for a more diversified and durable recovery, provided government continued to improve infrastructure, the investment climate and value chain policies.
Manufacturing, ICT remain resilient
Manufacturing remained in positive territory, growing by 3.24 per cent, only slightly below the 3.29 per cent recorded in Q1.
CPPE said the resilience was significant given continuing pressures from energy, finance and logistics costs.
Within manufacturing, food, beverages and tobacco grew by 2.79 per cent, electrical and electronics by 1.51 per cent, and non metallic products by 2.17 per cent.
Transport and storage also remained resilient at 5.70 per cent, despite moderating from 7.41 per cent in Q1. Road transport grew by 5.82 per cent, while rail transport and pipelines expanded by 3.74 per cent.
Information and communication technology remained among the strongest performing areas of the economy, recording 9.62 per cent growth, with telecommunications expanding by an impressive 10.38 per cent.
CPPE said the continued expansion in food processing, transport and telecommunications was important because of their extensive linkages with production, distribution, consumer demand and employment.
CPPE warns power crisis could undermine recovery
Despite the positive GDP figures, CPPE identified the electricity, gas and steam sector as one of the economy’s major weaknesses.
The sector contracted by 10.63 per cent in Q2, although this represented a moderation from the 15.30 per cent contraction recorded in Q1.
CPPE said sustained recovery in the power sector was essential to maintaining the broader economic momentum, noting that improved electricity supply would reduce production costs across manufacturing, agriculture, mining, ICT, logistics and services.
It also argued that reliable electricity would free businesses from the heavy capital burden associated with self generation and improve Nigeria’s competitiveness.
The textiles, apparel and footwear sector also contracted by 1.23 per cent, while motor vehicle assembly declined by 1.02 per cent. Quarrying and other minerals recorded a sharp 39.13 per cent contraction after strong growth in Q1.
‘Growth must translate into better living’
CPPE said the latest GDP figures should not be assessed solely by the headline growth rate, arguing that the real test would be whether the recovery generated productive employment, increased household incomes and reduced poverty.
It urged the government to strengthen the linkages between fast growing sectors such as refining, extractives, finance and telecommunications and employment intensive activities including agriculture, agro processing, textiles, construction, trade and small scale manufacturing.
The organisation called for lower financing and logistics costs, improved infrastructure, predictable regulation and stronger access to long term finance for businesses.
It also urged government to accelerate electricity sector reforms, address gas supply and market liquidity constraints, improve metering and commercial discipline, and support embedded generation, captive power, industrial mini grids and renewable energy systems.
On agriculture, CPPE recommended greater investment in irrigation, improved seeds, fertiliser, mechanisation, extension services, storage, cold chains, insurance and credit guarantees, while calling for reliable industrial offtake for farmers.
It further advocated improved freight infrastructure, modernised ports, expanded cargo rail, better warehousing and cold chain facilities, as well as faster customs and regulatory processes to reduce logistics costs.
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CPPE seeks inclusive growth dashboard
The organisation also called for a stronger social policy response to ensure that vulnerable Nigerians benefit from the improving economy.
It recommended targeted and digitally verified cash transfers, nutrition support, labour intensive public works, apprenticeships and market relevant technical training, alongside temporary support for viable MSMEs.
CPPE proposed that the government publish an inclusive growth dashboard alongside quarterly GDP reports, tracking employment, real wages, poverty sensitive inflation, MSME performance, agricultural yields, manufacturing value added, electricity supplied to productive users, non oil exports and private investment.
According to the organisation, such a mechanism would shift attention from simply measuring how fast the economy is growing to determining who is benefiting from the growth.
CPPE said Nigeria should aim to progressively raise economic growth towards 6 to 7 per cent, driven by sectors with strong employment potential and domestic value chain multipliers.
The organisation described the Q2 GDP report as a “strong and positive signal”, but stressed that the ultimate objective should be to convert stronger output into expanding businesses, productive employment, rising real incomes and a sustained reduction in poverty.
