The Nigeria Employers’ Consultative Association (NECA) has welcomed Nigeria’s latest economic growth figures but cautioned that the country’s recovery process remains delicate and requires sustained policy support.
NECA Director-General, Mr Adewale-Smatt Oyerinde, said the 4.43 per cent Gross Domestic Product (GDP) growth recorded in the second quarter of 2026 was encouraging but should not be interpreted as evidence of a complete economic turnaround.
In a statement issued on Tuesday in Abuja, Oyerinde described the development as a sign of gradual improvement that must be supported with policies aimed at strengthening businesses and productive sectors.
“We note and commend the new Q2 2026 GDP report by the Federal Government and wish to state that while this is encouraging, it is not yet a sign of full recovery,” he said.
GDP growth shows momentum, but challenges remain
According to NECA, the latest GDP performance represents continued economic expansion for the second consecutive quarter and indicates that some sectors are beginning to regain momentum.
Oyerinde said the 4.43 per cent growth rate was the strongest quarterly performance since the third quarter of 2024.
However, he warned that the recovery could be threatened by persistent challenges affecting businesses, including rising operational costs, regulatory pressures and weak productive capacity.
He said the focus should now shift from celebrating growth figures to ensuring that economic expansion improves business performance and household welfare.
Businesses yet to fully feel impact of growth
The NECA boss noted that Nigerian GDP figures alone do not necessarily reflect the realities faced by employers, investors and households.
He questioned whether the economic expansion was translating into stronger businesses, increased productivity and improved living standards for Nigerians.
“A 4.43 per cent expansion does not automatically mean that businesses are thriving or households are better off,” he said.
Oyerinde identified several challenges slowing business growth, including: High energy costs, poor infrastructure, limited access to affordable financing, weak consumer purchasing power, rising production expenses.
He said the slowdown in industrial sector performance remained a concern because manufacturing and other productive industries are critical for job creation.
NECA calls for production-driven economy
The employers’ body urged the government to accelerate the transition from consumption-based growth toward an economy driven by manufacturing, agriculture, agro-processing, industrial investment and enterprise development.
Oyerinde said Nigeria needs economic growth that produces measurable outcomes, including decent employment opportunities, stronger businesses and improved household incomes.
“The real test is whether the ongoing reforms will translate GDP growth into more decent jobs, higher productivity, improved productive capacity and stronger business competitiveness,” he said.
He added that Nigerians should begin to see visible improvements in their daily economic realities as reforms continue.
Productive sectors key to sustainable recovery
NECA described the latest Nigeria GDP figures as a positive indicator but stressed that long-term recovery depends on strengthening the sectors capable of creating broad economic benefits.
The association said government policies must focus on supporting businesses, reducing production barriers and encouraging investment.
Oyerinde said the priority should be converting economic growth into “productive, visible and inclusive impact” that supports companies, creates employment and improves living standards.
Background Information
GDP growth measures the expansion of economic activity, but economists often note that growth does not automatically improve living standards.
For businesses, sustainable recovery depends on: Lower operating costs, eliable electricity supply, access to financing, strong consumer demand, increased investment, higher productivity
Nigeria’s private sector has repeatedly called for reforms that make it easier for businesses to operate and expand.
