PwC projects Nigeria’s economy to grow by 4.3% in 2026

By : Joesph Chibueze

Date: 7 January 2026 4:28pm WAT

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PricewaterhouseCoopers (PwC) Nigeria has projected a 4.3 per cent growth in

The projection is contained in PwC Nigeria’s Economic Outlook 2026, released on Tuesday with the theme “Turning Macroeconomic Stability into Sustainable Growth.” The firm said the outlook is premised on inflation continuing to moderate gradually and the naira remaining broadly stable.

According to the report, the persistence of fiscal constraints reinforces the need for improved capital efficiency and stronger balance-sheet discipline across both public and private sectors.

PwC noted that Nigeria recorded notable improvements in macroeconomic stability in 2025 following key monetary and foreign exchange reforms, with inflation easing, exchange-rate conditions stabilising and external reserves strengthening.

The outlook highlighted how these gains are reshaping the operating environment for businesses, investors and markets as the country moves into 2026, particularly influencing investment decisions, cost structures, funding strategies, and regulatory, tax and digital priorities.

The Economic Outlook 2026 identified seven key issues expected to shape Nigeria’s economic performance in the year ahead. These include monetary policy effectiveness, fiscal sustainability and reform execution, global economic and geopolitical dynamics, domestic security and social pressures, uneven sectoral growth, consumer affordability constraints, and the expanding role of the digital economy and artificial intelligence. Commenting on the report, Country Senior Partner, PwC Nigeria, Sam Abu, said:

“PwC Nigeria’s Economic Outlook 2026 provides forward-looking analysis of key macroeconomic indicators and what they signal for the economy and for business leaders.

“Nigeria has achieved improved macroeconomic stability over the past year. The focus now is how that stability is translated into sustainable economic growth, and how businesses position for 2026. For companies, this stability provides a more predictable operating environment for planning, investment, and growth decisions.”

Also speaking, Partner and Chief Economist, PwC Nigeria, Olusegun Zaccheaus, said: “The seven themes in the Outlook show how global and domestic forces will shape economic performance in 2026. “Globally, growth is projected at around 3.1 per cent, while merchandise trade growth slows to about 0.5 per cent, keeping oil prices, capital flows, and access to foreign inflows as key channels influencing Nigeria’s growth and FX liquidity.

“Domestically, improved monetary effectiveness has reduced volatility and clarified pricing, cost, and funding signals, even as fiscal pressures, security challenges, and weak household purchasing power continue to shape sector outcomes.

“Growth is more likely to remain concentrated in services and selected capital-intensive sectors, placing a premium on disciplined capital allocation and sector selection.”

Against this backdrop, PwC Nigeria outlined practical imperatives for business leaders in 2026, including making selective investment bets in attractive sectors and regions, scenario planning for macroeconomic and geopolitical shocks, adapting business models and cost structures for resilience, accelerating digital transformation and responsible adoption of artificial intelligence, and strengthening regulatory and tax compliance as reforms transition from design to execution.

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