Group calls for lower production costs, more jobs as economy records strongest quarterly growth in five years…..
The Centre for the Promotion of Private Enterprise (CPPE) has described Nigeria’s 4.43 per cent economic growth in the second quarter of 2026 as a positive indication that the country’s economy is gradually gaining momentum.
The group said the latest Gross Domestic Product (GDP) figure, which rose from 3.89 per cent in the first quarter and 4.23 per cent in the corresponding quarter of 2025, represents the strongest quarterly growth recorded in five years.
In a statement issued on Tuesday by its Chief Executive Officer, Dr. Muda Yusuf, CPPE said the expansion reflected stronger oil production and improved performance across several sectors of the non-oil economy.
The organisation said oil-sector growth increased significantly from 2.57 per cent in the first quarter to 7.31 per cent in the second quarter.
It attributed the improvement partly to higher crude oil production, with average output rising from 1.55 million barrels per day in the first quarter to 1.72 million barrels per day in the second.
The non-oil economy also recorded stronger growth, accelerating from 3.94 per cent in the first quarter to 4.31 per cent in the second quarter.
Services remained the largest contributor to real GDP, growing by 4.60 per cent and accounting for 56.62 per cent of total real GDP during the period.
CPPE said the latest figures suggest that improved foreign exchange stability, stronger oil production, increased investor confidence and better corporate performance are beginning to support economic recovery.
“The GDP report is an encouraging affirmation that the economy is gaining momentum. The priority now is to broaden these gains, strengthen employment-intensive sectors and ensure that improving output translates into better living standards,” the group said.
According to CPPE, several sectors recorded significant improvements during the quarter.
Mining and quarrying growth rose from 1.89 per cent to 6.37 per cent, while agriculture increased from 3.15 per cent to 4.39 per cent.
Livestock recorded a particularly strong improvement, accelerating from 2.20 per cent to 6.92 per cent.
Construction grew from 6.38 per cent to 6.75 per cent, while trade increased from 2.08 per cent to 2.40 per cent.
Financial and insurance services also strengthened, rising from 8.54 per cent to 9.29 per cent, while real estate growth increased from 2.29 per cent to 3.76 per cent.
Domestic refining remained one of the fastest-growing areas of the economy, expanding by 43.94 per cent in the second quarter, compared with 37.46 per cent in the first quarter.
Cement production grew by 12.75 per cent, while chemicals and pharmaceuticals expanded by 7.70 per cent. Accommodation and food services rose by 6.96 per cent, while arts and entertainment recorded 11.93 per cent growth.
The group, however, said some productive sectors continued to face significant structural challenges.
Manufacturing grew marginally by 3.24 per cent in the second quarter, compared with 3.29 per cent in the first quarter, despite persistent pressures from energy, financing and logistics costs.
Food, beverages and tobacco manufacturing grew by 2.79 per cent, while electrical and electronics manufacturing expanded by 1.51 per cent.
Transport and storage also remained positive at 5.70 per cent, although growth slowed from 7.41 per cent in the first quarter.
Information and communication technology continued to perform strongly, recording 9.62 per cent growth, while telecommunications expanded by 10.38 per cent.
CPPE said the performance of these sectors was important because of their links to production, distribution, consumer demand and employment.
However, it expressed concern over the continued contraction in the power sector.
Electricity, gas and steam contracted by 10.63 per cent in the second quarter, although the decline was less severe than the 15.30 per cent contraction recorded in the first quarter.
CPPE said sustained improvement in electricity supply would be critical to lowering production costs and improving competitiveness across manufacturing, agriculture, mining, ICT, logistics and other services.
The group also identified textiles, apparel and footwear as sectors requiring targeted intervention after recording a 1.23 per cent contraction in the second quarter.
Quarrying and other minerals declined by 39.13 per cent, while motor-vehicle assembly contracted by 1.02 per cent.
CPPE urged the government to use the current economic recovery as an opportunity to strengthen sectors with high employment potential and stronger domestic value chains.
It called for increased investment in power generation, transmission and distribution, as well as measures to resolve gas supply and liquidity challenges in the electricity market.
The organisation also advocated improved access to long-term and affordable financing for manufacturers, farmers, MSMEs and other productive businesses.
On agriculture, CPPE recommended greater investment in irrigation, farm security, mechanisation, improved seeds, fertiliser, storage, insurance and access to credit.
It also called for improvements in transport infrastructure, including freight roads, cargo rail, ports, warehouses and cold-chain facilities, to reduce logistics costs.
The group said the financial sector’s strong performance should be leveraged to increase credit flows to manufacturing, agriculture, mining and MSMEs.
It further urged policymakers to ensure that the benefits of economic growth translate into improved employment and household welfare.
CPPE recommended targeted social protection measures, including cash transfers, nutrition support, labour-intensive public works, apprenticeships and technical training.
The organisation also proposed an inclusive-growth dashboard to accompany quarterly GDP reports, with indicators covering employment, real wages, MSME performance, agricultural output, manufacturing, electricity supply, non-oil exports and private investment.
CPPE said the 4.43 per cent GDP growth provides a credible foundation for stronger economic expansion but warned that sustaining the momentum would require consistent policies, lower production costs and greater investment in productive sectors.
The group said Nigeria could progressively move towards 6–7 per cent economic growth if reforms were sustained and investment was concentrated on sectors capable of generating jobs and strengthening domestic value chains.
