Economy
CPPE Forecasts 4.5% GDP Growth for Nigeria in 2026
By Adedapo Adesanya
The Centre for the Promotion of Private Enterprise (CPPE) has forecast that Nigeria’s economy may grow as much as 4.5 per cent in 2026 following major gains in macroeconomic stability in 2025, which could pave way for stronger growth.
The chief executive of CPPE, Mr Muda Yusuf, disclosed this in a statement while presenting the organisation’s review of the economy in 2025 as well as its outlook for 2026.
He noted that the country recorded gains especially in exchange rate management inflation and business confidence this year, adding that 2025 provided a strong foundation of stability and with sustained reforms and improved security, 2026 could witness more robust growth and better living standards.
According to him, the most notable achievement in 2025 was the stability of the Naira which traded largely between N1,440 and N1,500 to the Dollar.
He said that this stability boosted business confidence, reduced imported inflation, and made pricing and investment planning more predictable.
He added that inflation also dropped sharply from 24.48 per cent in January, to about 14.45 per cent in November, strengthened by improved supply conditions and reduced logistics pressures.
According to him, prices of many food items and imported goods fell during the year, leading to improved consumer sentiment.
Mr Yusuf said that business confidence also strengthened throughout the year, adding that, many companies which recorded losses in 2024 returned to profitability in 2025.
On fiscal performance he said that federal government revenues fell short because of lower than expected oil prices and weak oil production.
He added that the 2025 budget was based on assumptions that did not materialise, including oil production of 2.06 million barrels per day, and an oil price of 75 dollars per barrel.
Mr Yusuf said that actual production averaged 1.66 million barrels, while prices hovered around $66. According to him, this led to a significant shortfall from the projected 41 trillion naira revenue target, and weakened capital expenditure performance.
He, however, disclosed that many states performed better, with stronger internally generated revenue, improved liquidity and better project execution.
Reviewing sectoral performances, he said that the service sector remained the strongest driver of growth, accounting for 53 per cent of GDP by the third quarter of the year.
“Telecommunications finance construction real estate and trade led the expansion,” he said
He said that the non oil sector grew by 3.91 per cent and contributed over 96 per cent of GDP.
According to him, manufacturing remained weak, contributing only 7.62 per cent to GDP and growing by 1.25 per cent due to power shortages high logistics costs unfair import competition and rising operating expenses.
Mr Yusuf noted that Agriculture recorded a modest recovery, growing by 3.79 per cent though insecurity while low productivity remained major obstacles.
Looking ahead, the CEO said that rhe outlook for 2026 is one of cautious optimism.
He projected a GDP growth of between 4 and 4.5 per cent, supported by lower inflation stronger consumer demand and possible monetary easing.
He said that services would continue to drive growth while capital markets could receive a major boost from a potential listing of the Dangote Refinery.
Meanwhile, he warned of risks factors, including; insecurity, oil price and production volatility, high operating costs, fiscal pressures, geopolitical tensions, and political uncertainties.
Mr Yusuf noted that growing resistance to tax reforms could also affect revenue projections.
By Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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