Nigeria’s economy is on a positive trajectory amid ongoing reforms, improved economic indicators and stronger investor confidence, according to macroeconomic strategist Segun Adams, who stated that the benefits of the growth have not been evenly distributed across sectors.
Speaking during an interview on ARISE News, Adams said Nigeria’s economic performance in the first half of 2026 reflected growing momentum, highlighting improvements in GDP growth, inflation management, currency stability and investor confidence.
He said the economy recorded a 3.9 per cent Gross Domestic Product growth in the first quarter of the year, describing the performance as significant considering the backdrop of stringent monetary tightening and reforms introduced since 2023.
“The 3.9% was underpinned by oil sector 2.6, and then resilient non-oil sector 3.9,” Adams said.
According to him, Nigeria’s recent economic performance reflects the impact of reforms that have been implemented over the past few years, including measures that have improved investor confidence and contributed to the country’s first credit upgrade by S&P in over a decade.
“When you juxtapose this growth against the backdrop of stringent monetary tightening, you then see that the gains have been hard-fought for, and they speak volume rather to the reforms that have been in the works since 2023,” he said.
Adams cautioned that the growth recorded across the economy has not translated equally across all sectors, noting that some industries have benefited more than others.
He explained that while capital-intensive sectors have recorded significant improvements, labour-intensive sectors, which employ a larger proportion of Nigerians, have experienced slower growth.
“When you look at labour intensive sector, they have largely grown in line with the population growth since 2023, which means that people participating in that sector may not have felt the upside in this reform as much as those in capital intensive sector where the growth has doubled,” he said.
Adams also addressed concerns around inflation and the continued pressure on household purchasing power, explaining that a reduction in inflation does not necessarily mean that prices of goods and services will fall.
“Inflation moderating does not mean that prices necessarily fall unless we have a deflation,” he said.
He added that Nigeria’s ability to manage inflation has been supported by improved monetary discipline and a more stable currency environment.
On foreign capital inflows, the macroeconomic strategist stressed the need for Nigeria to attract more foreign direct investment rather than relying heavily on portfolio investments, which can be vulnerable to external shocks.
He said while capital inflows into Nigeria have improved, the quality and sustainability of those investments remain important considerations.
“We have to be watchful about and put on deliberate measures to ensure that FDI being currently at 1.3% is not good enough,” Adams said.
Adams further stated that sustaining Nigeria’s economic progress would require policy continuity, improved security and a shift from short-term stabilisation efforts towards long-term economic development.
“Ahead of 2027, we think that the conversation should be how we should ensure there’s continuity,” he said.
He concluded that while Nigeria’s economic indicators suggest improvement, the focus should now be on ensuring that growth translates into broader opportunities and better living conditions for Nigerians.
Ojo Triumph
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