PwC Projects 4.2% Nigeria Economic Growth in 2026, Urges Measures to Unlock Reform Dividend
Oru Leonard
Nigeria’s economy is projected to grow by 4.2 per cent in 2026, supported by increased crude oil production and improved performance across key sectors, according to PwC Nigeria’s latest economic outlook.
The projection was contained in PwC’s H2 2026 Nigeria Economic Outlook, which assesses the country’s economic performance and identifies measures required to translate recent macroeconomic gains into broader and more inclusive growth.
According to the report, Nigeria entered the second half of 2026 with improved macroeconomic conditions, including real Gross Domestic Product (GDP) growth of 3.89 per cent year-on-year in the first quarter.
It also noted that the naira had remained broadly stable, while the country’s external reserves increased.
However, PwC cautioned that structural constraints continue to limit the extent to which these improvements are benefiting households and businesses.
The report identified four priority areas that could help Nigeria unlock what it described as a broader “reform dividend.”
First, it called for increased targeted support for consumers and measures to reduce food, energy and transportation costs in order to strengthen household purchasing power.
Second, PwC recommended expanding access to affordable, longer-term financing while addressing the operational challenges constraining the growth of Micro, Small and Medium Enterprises (MSMEs).
The firm also urged greater prioritisation of investments in critical infrastructure and human capital, particularly power, transportation, broadband, security, education and workforce development.
According to the report, improvements in these areas would help lower business costs, increase productivity and strengthen the competitiveness of the Nigerian economy.
The fourth priority is the development of a stronger pipeline of bankable projects, alongside efforts to remove barriers preventing investor interest from translating into productive investments and job creation.
PwC said Nigeria’s ability to sustain its current macroeconomic improvements would depend on how effectively reforms are translated into tangible economic opportunities for businesses and households.
The firm’s outlook suggests that stronger crude oil production, combined with improved performance in key sectors, could support economic expansion to 4.2 per cent in 2026.
The report therefore emphasised the need for policymakers to consolidate recent gains while tackling structural bottlenecks that continue to constrain inclusive economic growth.
PwC’s Nigeria Economic Outlook: August 2026 provides an assessment of the country’s economic trajectory and highlights policy priorities aimed at ensuring that macroeconomic stability translates into stronger household welfare, business growth, investment and employment.
