Nigeria: Nigeria's Economy to Grow 4.2 Percent in H2, Reform Gains Yet to Reach Households

What the report says

PwC said Nigeria’s economy could expand by 4.2% in the second half of 2026, with higher crude output and stronger activity in sectors such as ICT, finance, construction and agriculture supporting growth. The assessment appeared in PwC’s H2 2026 Nigeria Economic Outlook, published through This Day and carried by AllAfrica, and said the country had made progress on macroeconomic stability but had not yet turned those gains into broad improvements for households.

The report said recent reforms had helped ease some pressures, including a more stable naira, stronger foreign reserves, better revenue collection and improved external inflows. Even so, PwC warned that inflation, high food and energy costs, and weak performance in some sectors were still limiting consumer welfare. It noted that food prices were rising faster than overall inflation, while diesel, petrol, kerosene and cooking gas remained expensive for businesses and families.

PwC also said Nigeria’s trade surplus, capital inflows and debt indicators had improved, but the quality of those gains remained a concern. Much of the inflow was portfolio money rather than long-term investment, and the trade balance was helped more by lower imports than by stronger non-oil exports. The firm said poverty and undernourishment remained high, underscoring why analysts view inclusive growth, job creation and cheaper access to food and credit as key tests for the reform agenda.