Nigeria Exits Acute Economic Crisis as NESG Forecasts 5.5% Growth
Nigeria has reportedly exited an acute economic crisis, with the Nigerian Economic Summit Group (NESG) forecasting a 5.5% GDP growth for 2026, signaling a gradual return to macroeconomic stability
In its latest report, NESG stated that Nigeria’s economy is showing signs of recovery after a challenging period marked by slow growth and rising inflation. The group, a key economic think tank, highlighted that if current policies are sustained, the country could achieve stronger growth and improved fiscal stability The NESG warned, however, that the next 18 months remain critical. Premature policy reversals or inconsistent economic reforms could derail the recovery and undermine the projected growth. Among other indicators, NESG projected Nigeria’s foreign reserves could rise to about $52 billion, providing a buffer against external shocks. Inflation, while still elevated at around 16%, is expected to gradually ease, with long-term targets aiming for single-digit rates by 2029. Economic analysts noted that the recovery has been largely driven by services, with other sectors such as manufacturing and agriculture still lagging. NESG emphasized the need for structural reforms to diversify growth and ensure long-term stability. The announcement aligns with recent government statements and initiatives aimed at attracting investment and fostering economic development, including a $2 billion fund to support energy transition and green investments. Economists have welcomed the NESG report as a positive signal for Nigeria’s economic outlook, but caution that sustained reform and policy consistency are essential to maintain momentum.
