The Centre for the Promotion of Private Enterprise (CPPE) has stated that Nigeria’s economy continues to demonstrate resilience despite a moderation in economic growth in the first quarter of 2026.
In response to the Q1 2026 Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS), the CPPE noted that the Nigerian economy recorded year-on-year GDP growth of 3.89 per cent in Q1 2026.
According to the economic advocacy group, although the growth rate was slightly lower than the 4.06 per cent recorded in the fourth quarter of 2025, the performance reflects continued macroeconomic stabilisation, improved business confidence, and the resilience of key non-oil sectors.
The CPPE explained that the moderation in growth should not be viewed negatively, stressing that the slower pace was expected following the gradual recovery already recorded in previous quarters.
“The moderation relative to the preceding quarter is not unusual, as first-quarter economic activities are typically softer because of seasonal and business cycle factors. Overall, the economy remains on a gradual recovery path,” the CPPE stated.
The organisation highlighted the strong performance of the services sector, which remained the principal driver of economic growth during the quarter. According to the CPPE, the sector contributed 57.73 per cent to GDP and expanded by 4.31 per cent year-on-year.
It noted that the financial services, trade, entertainment, and construction subsectors were particularly strong performers, reinforcing the growing importance of digital and knowledge-driven economic activities in Nigeria’s broader economic structure.
The CPPE further observed that the Information and Communications Technology (ICT) sector maintained impressive growth momentum during the quarter. The sector reportedly recorded an 11.25 per cent growth rate, underscoring the continued resilience of digital services despite prevailing macroeconomic pressures.
According to the organisation, the strong performance of the ICT sector demonstrates the increasing role of technology and digital innovation in supporting economic expansion, productivity, and service delivery across sectors.
The CPPE also pointed to the growing significance of the non-oil economy in Nigeria’s economic recovery trajectory. It stated that the trade sector emerged as the single largest contributor to GDP during the quarter, accounting for 17.89 per cent of total output.
The organisation attributed the performance largely to the positive impact of improved exchange rate stability, better foreign exchange liquidity conditions, easing inflationary pressures, and recovering business confidence.
It explained that the rebound in commercial activities and trade flows reflects improving market sentiment and gradual economic normalisation following earlier macroeconomic disruptions.
While acknowledging existing economic challenges, the CPPE maintained that the latest GDP figures indicate that ongoing reforms and stabilisation measures are beginning to yield measurable results across critical sectors of the economy.
The organisation reiterated the need for sustained policy consistency, investment-friendly reforms, infrastructure development, and support for productive sectors to consolidate the recovery momentum and drive inclusive economic growth.
CPPE added that continued support for the services sector, digital economy, trade facilitation, and private sector productivity would remain critical to strengthening Nigeria’s long-term economic resilience and competitiveness.
