Nigeria’s recent 3.98 per cent GDP growth has raised hopes of economic recovery, but for many low-income households and small business owners, the gains are yet to translate into better living conditions. Business leaders say the growth signals potential, but urgent policy action is needed to ensure it delivers real benefits for ordinary Nigerians.
The GDP expansion is widely linked to reforms implemented over the past two years, including foreign exchange unification and the removal of fuel subsidies. These measures, though difficult, are seen as necessary steps toward stabilising the economy. “The growth shows that good times are ahead. It’s like seeing clouds gather after a long dry season. It may take time, but eventually the rain will come,” a private sector leader said.
To accelerate the impact of growth on lower-income Nigerians, experts argue that manufacturing must become a central priority. Greater government patronage of locally made goods could help channel public spending directly into domestic production, creating jobs and boosting incomes. They say if a significant share of government procurement is sourced locally, the benefits will cascade through small and medium-sized manufacturing businesses and their supply chains.
Access to finance remains a major hurdle for manufacturing SMEs, particularly those looking to scale production or explore export opportunities. Industry groups say they are working with their members to increase local output while tapping into regional markets across Africa, especially under existing trade frameworks.
Infrastructure development is also seen as critical to making growth more inclusive. When government invests in infrastructure, it reduces the burden on businesses and households that would otherwise have to provide these services themselves. Among the most urgent needs is broadband penetration, which is increasingly viewed as core economic infrastructure. While connectivity has improved in major cities, limited access in rural and underserved areas continues to constrain youth-led businesses, digital services and innovation.
On social protection, experts believe Nigeria already has the tools to improve safety nets for households and SMEs. With widespread use of national identity numbers and mobile phones, the government is better positioned to deliver targeted support. They argue that while such systems may not be perfect, delaying implementation risks excluding productive citizens who need immediate support.
The confidence in official economic data has also come under discussion following the rebasing of Nigeria’s GDP and Consumer Price Index. Business leaders say transparent and reliable data is essential for planning, especially for young entrepreneurs who rely on accurate information to make investment and growth decisions. While acknowledging the need for ongoing dialogue around data openness, they note that Nigeria’s large population remains a strategic advantage for businesses.
Looking ahead to 2026, the private sector is expected to focus on improving value delivery to customers and shareholders, even amid economic uncertainty. Expanding within the local market while exploring international opportunities remains a priority, with regional and continental trade frameworks offering pathways for growth.
Platforms such as the ECOWAS Trade Liberalization Scheme and the African Continental Free Trade Area in place, businesses are increasingly encouraged to look beyond Nigeria’s borders. At the same time, strengthening domestic production is seen as essential to ensuring Nigeria can compete effectively while supporting other African economies according to its strengths and market size.
