Nigeria’s reforms stabilise economy but leave households under pressure
By the AFREEQUE newsroom, based on Vanguard
Illustrative image · mk_photoz · Pexels · Licence PexelsThe Nigerian Economic Summit Group says reforms undertaken over the past three and a half years have produced mixed results: growth and external reserves are rising, but food inflation remains high. Its president, Niyi Yusuf, says economic stabilisation creates favourable conditions but does not guarantee tangible improvements for businesses and households, according to Vanguard.
Nigeria’s economic reforms have stabilised some macroeconomic indicators, but their effects remain limited for businesses and households, Niyi Yusuf, president of the Nigerian Economic Summit Group (NESG), said at the 32nd Nigerian Economic Summit in Abuja on Monday. Real GDP grew by 4.43% year on year in the second quarter of 2026, after 3.89% in the first quarter, while headline inflation fell to 14.63% in September from 34.8% in 2024.
The easing has not led to a lower cost of living: food inflation was still 19.59% in September. Yusuf also noted an approximately 11.6% contraction in electricity and gas production in the first half of 2026. Electricity generation fell from 5,400 MW in the fourth quarter of 2025 to 4,454 MW in the second quarter of 2026.
Gross foreign reserves stood at about $55.1 billion in October. Nigeria attracted nearly $23.2 billion in foreign capital since the start of 2026, but portfolio investment dominated and foreign direct investment remained low. Public debt reached 166.79 trillion naira in June, while debt servicing accounted for about half of federal revenue.
Yusuf also reported maximum lending rates close to 29.2% in August and a fall in credit to the private sector to 18.1% of GDP. For the NESG president, stabilisation can create the conditions for economic progress, but is not enough to deliver it.
The NESG’s findings are part of the debate on the effects of Nigeria’s economic reforms, while the government is seeking, among other things, to bring inflation below 10% before the end of 2027, in line with the target announced by Nigeria.
