CPPE: Nigeria’s Economy on Gradual Recovery Path — but Structural Gaps Persist
Lagos, Nigeria ,Thursday, May 28, 2026
The Centre for the Promotion of Private Enterprise (CPPE) has stated that Nigeria’s economy is showing signs of a gradual recovery, while warning that deep-rooted structural weaknesses in key sectors could undermine long-term stability if not urgently addressed.
The economic think tank made this known in its policy brief analyzing Nigeria’s first quarter (Q1) 2026 Gross Domestic Product (GDP) report, released on Thursday.
According to CPPE, recent macroeconomic indicators suggest cautious improvement in output performance, driven by modest gains in some non-oil sectors and ongoing policy adjustments aimed at stabilizing key economic variables. However, the organisation stressed that the recovery remains fragile and uneven across sectors.
The group highlighted that persistent challenges such as weak industrial productivity, inadequate infrastructure, foreign exchange volatility, and high operating costs continue to weigh heavily on private sector growth and investment confidence.
It further noted that while reforms initiated by economic managers have begun to yield incremental benefits, structural bottlenecks—particularly in power supply, logistics, and regulatory inefficiencies—remain significant constraints to sustainable growth.
CPPE urged policymakers to complement short-term stabilization measures with long-term structural reforms that improve competitiveness, enhance productivity, and strengthen investor confidence in the economy.
The think tank also emphasized the need for coordinated fiscal and monetary policies to consolidate the gains of the gradual recovery and prevent a relapse into macroeconomic instability.
Overall, CPPE maintained that Nigeria’s economic outlook is cautiously optimistic, but stressed that without decisive reforms, the recovery trajectory could be slowed or reversed by unresolved structural vulnerabilities.
