The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to ensure that Nigeria’s 4.43 per cent economic growth in the second quarter of 2026 translates into increased employment, higher household incomes and improved living standards.
In a policy statement on Tuesday, the policy think-tank said the growth, which accelerated from 3.89 per cent in the first quarter and 4.23 per cent in the corresponding quarter of 2025, was a positive indication of improving economic momentum but should be accompanied by stronger welfare outcomes.
The policy think-thank’s Chief Executive Officer, Dr Muda Yusuf said the priority should now be to consolidate the recovery by reducing production costs, strengthening investment and expanding employment-intensive sectors.
The CPPE noted that the Q2 growth was the strongest quarterly performance in five years and was supported by stronger oil production and expansion across several non-oil sectors.
It said oil-sector growth rose from 2.57 per cent in Q1 to 7.31 per cent in Q2, following an increase in average crude oil production from 1.55 million barrels per day to 1.72 million barrels per day.
The non-oil economy also strengthened from 3.94 per cent to 4.31 per cent, while the services sector grew by 4.60 per cent and accounted for 56.62 per cent of real GDP.
According to the CPPE, improved foreign exchange stability, higher oil output, stronger investor confidence and better corporate performance were among factors supporting the recovery.
It, however, cautioned against abrupt policy reversals, saying continuity in the broad reform direction was necessary to preserve recent gains in macroeconomic stability and investor confidence.
The organisation said the next phase of reforms should focus on ensuring that economic expansion produces broader benefits for businesses and households through lower inflation, declining interest rates, reliable electricity, efficient logistics and a predictable regulatory environment.
The CPPE identified the power sector as a major constraint to sustained economic growth, noting that electricity, gas and steam contracted by 10.63 per cent in Q2, despite an improvement from the 15.30 per cent contraction recorded in Q1.
It called for accelerated investment in electricity generation, transmission and distribution, as well as measures to resolve gas-supply and market-liquidity challenges.
The group also urged the implementation of state electricity-market reforms under the Electricity Act, alongside greater support for embedded generation, captive power, industrial mini-grids and renewable energy systems.
On employment, the CPPE called for a targeted industrial strategy focused on sectors with strong job-creation and domestic value-chain potential.
It listed agro-processing, textiles and garments, pharmaceuticals, automotive components, basic metals, chemicals, construction materials and light manufacturing among the sectors requiring policy attention.
The organisation recommended cheaper and longer-tenor financing, duty relief on machinery and critical inputs not available locally, predictable tariffs and taxes, and transparent local-content and procurement policies.
It said manufacturing remained resilient, growing by 3.24 per cent in Q2 compared with 3.29 per cent in Q1, despite persistent energy, financing and logistics challenges.
The CPPE also highlighted the strong performance of information and communication technology, which grew by 9.62 per cent, with telecommunications expanding by 10.38 per cent.
Domestic refining recorded 43.94 per cent growth in Q2, while financial and insurance services rose by 9.29 per cent and construction by 6.75 per cent.
However, the group identified weaknesses in some sectors, including textiles, apparel and footwear, which contracted by 1.23 per cent in Q2.
It said a turnaround in such employment-intensive sectors would strengthen the transmission of economic growth to workers and households.
The CPPE also welcomed the improvement in agriculture, which grew from 3.15 per cent in Q1 to 4.39 per cent in Q2, but called for stronger support through improved farm security, irrigation, mechanisation, extension services, storage, insurance and access to credit.
It further recommended measures to reduce logistics costs, including rehabilitation of major freight roads, expansion of cargo rail, port modernisation and faster cargo clearance.
The organisation said the financial sector’s strong performance should be channelled more effectively towards productive sectors such as manufacturing, agriculture, mining and MSMEs.
It also called for stronger social protection measures, including targeted cash transfers, nutrition support, labour-intensive public works, apprenticeships and technical training, to ensure that vulnerable households benefit from economic recovery.
The CPPE proposed an inclusive-growth dashboard to accompany quarterly GDP reports, with indicators covering employment, real wages, MSME performance, agricultural yields, manufacturing value added, electricity supplied to productive users, non-oil exports and private investment.
According to the organisation, measuring these indicators alongside GDP would help determine whether economic growth was translating into tangible improvements in the welfare of Nigerians.
The CPPE said sustained reforms and stronger productive investment could help Nigeria progressively raise its economic growth towards six to seven per cent, driven by sectors with strong employment and domestic value-chain multipliers.
It maintained that the latest GDP performance provided a basis for cautious optimism, but stressed that the ultimate measure of the recovery should be expanding businesses, productive employment, rising real incomes and a steady reduction in poverty.